Almost two-thirds (64%) of employers do not provide financial advice for their employees because it is too expensive and they do not have the budget, according to independent research organisation Lightbulb.
Its survey of 300 UK-based employers also found that that 50% have financial advice on their short-term agenda, with 42% setting aside budget to pay for employee financial advice and a further 5% confirming that this is their plan for 2019.
Although 87% of employers believe that financial advice is something that their employees would benefit from, only 18% see it as their responsibility to provide this in the workplace.
More than seven in 10 (73%) respondents were not aware that the government had increased the available tax exemption for employer-arranged pensions advice from £150 to £500; an additional 63% said that now they were aware of this, they would utilise it for staff.
Elliott Smith (pictured), managing director at Lightbulb, said: “This year’s report builds on five years’ worth of research into pensions and employee benefits with firms throughout the UK. We have been surprised by how positive the results are this year, given the uncertainty that employers currently face.
“We see several indicators that suggest that employers are reviewing what more they can do to improve the effectiveness and impact of their investment in employee benefits.”