British bosses are being urged to educate workers in order to close the employee savings gap, according to a new report by Close Brothers. Working in conjunction with the Pension and Lifetime Savings Association, the Lifetime Savings Challenge Report 2017 has revealed that many employees across the country don’t understand how to save for the future or what support is available.
The report showed that one in three workers are saving less than £50 a month, with one in five not saving anything at all. The general consensus seems to show there’s a lack of clarity in what workers need to do make sure they’re set in years to come, with nearly two in three admitting they aren’t confident in their ability to choose the right financial product to help them achieve their savings ambitions.
65% of bosses think there should be a joint effort to look after the future wellbeing of their staff, yet less than half of businesses offer any financial education. 20% are set to introduce more financial training over the next year as mandatory enrolment comes into effect. 75% of employees believe they’ve been failed by management when it comes to what’s best for the workers, while just a third who had received financial education found it useful. Financial specialists are urging management to do more now to ensure their employees’ security.
“Employers have a key role to play in solving this Lifetime Savings Challenge, but despite them seeing it as their responsibility to enhance the financial education of their workforce, far too few are adequately addressing the issue amongst their employees,” said Jeanette Makings, Head of Financial Education at Close Brothers. “Employers are hugely trusted and perfectly placed to close this knowledge gap. By working closely with them to develop impactful education, we can help employees secure a solid financial future for both themselves and their families.”
Does your company do enough to prepare you for the future? Download the full report to see what more could be done.