COVID-19 pandemic make accessible savings equally important as pensions
06 August 2020
A recent survey of 3,000 adults in the UK, conducted by Cushon, showed that 77.5% of participants said that the recent pandemic has made them realise the significance of having savings to fall back on.
73% of those surveyed advised that whilst having a pension and saving for the future was important, having easily accessible savings is now equally as important.
Cushon, uncovered that financial strength is currently crucial with an overwhelming number of individuals realising how important it is to have a saving pot to fall back on in the event of the unexpected happening.
This finding is backed up by recent research from the Mental Health Foundation that revealed that more than a third of UK adults in full time work are concerned about losing their jobs due to the current pandemic and that more than a third of survey participants were worried about bill payments and debts.
Additional findings from Cushon’s research found that 91% of employers felt that their employees had realised the importance of having a savings pot to help when unexpected events, such as Covid-19. Their survey looked at what steps employers could be undertaking to help support employees with their financial wellbeing. 84% of employers felt that financial strength is essential, and they should help their employees to construct accessible savings with 93% of employers now considering setting up a workplace savings scheme to help promote better saving habits in addition to a pension scheme.
Over 57% of employees suggested that if their employer were to set-up a workplace savings scheme, during the Covid-19 crisis, which they could pay into directly from their salary and that they could afford to, they would take up the offer.
Steve Watson, head of proposition, Cushon, said:
“Financial worries are widespread and there is so much uncertainty for many of us right now. Providing a workplace savings initiative, where employees can contribute directly from their pay packet is a great way for businesses to support financial wellbeing and help employees become more financially resilient.”
“During the coronavirus lockdown many traditional perks such as gym memberships and season ticket loans have become redundant, so companies have had to think creatively about more relevant initiatives to offer their employees.
“We’ve seen a steady increase in companies offering workplace savings initiatives over the last couple of years as financial wellbeing has crept up the corporate agenda. But the pandemic has definitely amplified the need and as our research shows, employers are stepping up to the plate and looking to put something in place.
“Workplace savings schemes are the best way to engage employees of all ages and encourage them to save for short and long-term priorities, and employers are recognising this.”
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