Research conducted by ProShare, in partnership with YBS Share Plans, Secondsight and WEALTH at work, shows that millennials (16 to 37-year-olds) often don’t take advantage of share schemes because they think the schemes are outdated, inflexible and unaffordable.
Jonathan Watts-Lay, Director, WEALTH at work, a leading provider of financial education, guidance and advice in the workplace comments;
“It comes as no surprise that one of the main barriers to participation in share schemes is affordability. That is why financial education is a crucial component before launch.
Financial education can not only help employees understand how they can cut costs and save money in order to be able to afford to contribute, but it can also inform employees about the various benefits of the different types of share schemes and key considerations to think through such as levels of risk and tax treatments.
For example, employees can learn about linking a SIP with a pension to benefit from double tax relief; or they can discover how to shelter SAYE gains from tax by linking to an ISA.
This encourages longer-term saving which can result in greater financial wellbeing, and in turn, improve employee retention.
To view the research findings, please click here.