Savings now equally as important as pensions
In a survey¹ conducted amongst 3,000 adults in the UK, 77.5% said that the recent pandemic has made them realise the importance of having savings to fall back on.
In addition, 73% of those surveyed said that whilst having a pension and saving for the future was essential, having easily accessible savings is now equally as important.
The research, conducted by Cushon, the workplace savings specialists, found that financial resilience is key right now and an overwhelming majority of individuals have realised the importance of having a savings pot to fall back on in the event of the unexpected happening.
Research from the Mental Health Foundation backs this up with more than a third of UK adults in full time work concerned about losing their jobs as a result of the pandemic. It also found that more than a third of those surveyed said they were worried about their finances such as bill payments and debts.
Findings from Cushon’s research found that an overwhelming 91% of employers felt that their employees had woken up to the importance of having a savings pot to help when unexpected events, like Covid-19, occur.
The survey looked at what employers could be doing to help support employees with their financial wellbeing. Eighty-four per cent of employers felt that financial resilience is vital and they should help their employees build accessible savings and ninety-two per cent of employers would now consider setting up a workplace savings scheme to help foster better savings habits in addition to a pension scheme.
Over 57% of employees said if their employer set-up a workplace savings scheme during the Covid-19 crisis, which they could pay into directly from their salary and they could afford it, 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.”
¹Cushon‘s Financial Resilience research conducted amongst 2,000 individuals and 1,000 HR Managers - May 2020
“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.”
From as little as £10 per month, employees can choose to contribute to their savings pot direct from their pay. Many employers choose to top this up with a contribution, much like a pension scheme. It’s also beneficial for higher earners who find themselves caught by the tapered annual allowance as it allows them to divert some of their pension contributions into a savings pot.
Offering a workplace savings scheme, where employees can contribute directly from payroll, helps make the scheme accessible to everyone, no matter their age, earnings and circumstance.
