Employers who do not invest in financial advice for their staff risk decreased productivity in their workplace, leading planning heads have said.
Provider and technology providers have called for employers to take financial advice more seriously and help employees plan for retirement after Chase de Vere research last week showed 83 per cent of companies do not think their workers would benefit from investment in advice.
Aegon head of pensions Kate Smith says financial advice is crucial to how staff plan for retirement, and employers should be offered greater incentives to encourage them to invest in workplace planning programmes.
She says: “Too many employers are reluctant to invest in advice services. Greater financial incentives are needed to encourage employers to provide this service to their employees and at the very least, people need to take advice as they approach retirement and before they make any critical decisions on how to take their money.”
Moneyhub chief executive Samantha Seaton says employers should also note the correlation between poor financial health and workplace productivity.
She says: “Millions of Brits aren’t saving enough for retirement. 16.8 million Brits have less than £100 in savings, and household debt is rising. This has knock on effects, with a quarter of people suffering with money problems so substantial that it is affecting their ability to do their job.”
The Chase de Vere research also found 33 per cent of employers will not shell out financially to help staff.
Seaton says: “In order to protect the business bottom line, it’s vital that employers start taking financial advice seriously. Not only does investing in financial advice improve an employee’s long term financial wellbeing, but improve engagement and loyalty, reduce cost for the business, and ultimately increase revenue.”