Retailer Co-op is planning to extend access to its opt-out savings scheme following a successful trial.
The opt-out scheme automatically enrols employees to save a default amount of their wages each month, allowing them to build a financial buffer. They can access their savings whenever they need to without fees or penalties, as part of a flexible approach that considers unexpected financial needs.
Co-op launched the scheme, which was developed and trialled in partnership with public benefit research and innovation centre Nest Insight, after discovering that four in 10 of its employees in its food business reported having less than £100 in savings. Of those employees participating in the trial, 70% are actively saving. On average, those participating have saved £100 after four months and £200 after eight months.
Co-op is now planning to extend the scheme to thousands more employees in the coming months, with a focus on its frontline employees who may face financial uncertainty.
The initiative has reinforced the organisation’s commitment to tackling socio-economic barriers that impact financial resilience and mobility, and further supports its goal of creating a fairer and more inclusive workplace.
Claire Costello, chief people and inclusion officer at Co-op, said: “Our employees told us they needed help to start saving, especially for the unexpected, and autosave has proven to be a simple but powerful way to offer that support. We’re preparing to make this scheme available to thousands more employees as we continue to roll it out, because we’ve seen the difference it makes in helping people feel secure, confident, and in control of their finances.
“By making staff financial wellbeing a core priority, we’re also taking action on social mobility, a crucial ambition for Co-op and one that’s central to our vision. As employers, we have a vital role to play in creating a workplace that empowers growth, and I’m proud that Co-op is leading on this.”
