Increasing numbers of workplaces now offer access to financial advice for employees
20 June 2019
A recent survey of employers reveals that 35% currently offer their employees access to financial advice, compared to 12% last year.
Research from WEALTH at work has found that increasing numbers of employers are now offering financial advice as part of their workplace benefits.
Jonathan Watts-Lay, Director, commented that regulated financial advice can help employees understand their personal financial situation, whether they’re saving for their future, or facing investment and tax considerations. It also provides individuals with added consumer protection for the advice given and can prevent them from making costly mistakes. This is especially important at-retirement when individuals are at the point of selecting retirement income options.
According to Watts-Lay, studies have shown that those who take regulated financial advice are more likely to increase their wealth than those who do not. For example, the International Longevity Centre revealed that individuals age 45 and over who receive financial advice are on average £40,000 better off than those who don’t. However, he warns that:
“…since the pension freedoms, there are concerns that individuals are making decisions about their retirement savings without taking regulated financial advice, or really understanding the consequence of them. The effects of this are that it can be easy for employees to make poor decisions and leave a permanent dent in their retirement income. For example, paying more tax than necessary, falling victim to a scammer or making ill-judged investment choices.”
Watts-Lay added that employers are increasing utilising specialist providers to put services such as financial education, guidance and regulated financial advice in place, to support their employee’s financial wellbeing.
“After all, offering this sort of support is an efficient way for employers to help their employees access reputable providers who have undergone due diligence, rather than leaving them to go it alone.”