The number of employers offering independent financial education, guidance and advice is set to almost double, a recent survey has found, as two-fifths of employees currently feel unsupported by their workplace when it comes to financial matters. 

 

New research found 41% of employees do not feel supported to achieve financial wellbeing by their workplace. The survey by financial education firm Wealth at Work covers 1,019 full-time employees. 

 

Money worries can impact on people’s work, with 23% saying they struggle to concentrate and 15% admitting that their productivity has decreased. Worryingly, 16% say that this year is the first time they have incurred debt other than a mortgage during their professional lives. 

 

Things might be about to change, however, as more than half (53%) of employers say they will spend more on employee financial wellbeing over the next year, and 44% say tackling financial distress in the workplace will be a key focus over the next two years, according to a report by the Reward & Employee Benefits Association and Wealth at Work from September which surveyed almost 200 companies. 

 

Employers expect financial pressures to continue, including from childcare costs (64%), rents (66%), consumer inflation (75%), and energy prices (77%), finding that these factors are a risk to the financial wellbeing of their staff. Almost all (96%) say that financial wellbeing is an integral part of improving wider employee wellbeing, and 63% see poor financial literacy as a key financial wellbeing risk. 

 

Wealth at Work director Jonathan Watts-Lay said it was concerning that so many feel unsupported by their employer when it comes to their finances, stressing the importance of employees understanding the employee financial wellbeing support that is on offer. 

 

“This is why financial education in the workplace is so important, as it can not only help develop understanding and encourage engagement with the benefits on offer, but it’s also a catalyst for behavioural change and action, resulting in added value for both employers and employees,” said Watts-Lay. 

 

Other findings in the research include that financial worries have had a negative impact on people’s relationships and mental health. In the last year, 28% say they have lost sleep over money matters, and a quarter (26%) feel embarrassed about their money problems. Nearly a fifth (18%) have had arguments with family and friends, and the same percentage say they have been in tears over financial issues. 

 

What role can pension funds play in their employer’s wider financial education programme?