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Employers pour cold water on financial advice for staff

Employers do not believe investment in financial advice would benefit their employees, research has found.

Findings from Chase de Vere and research provider Lightbulb show fewer  firms are willing to prioritise advice compared to last year.

The joint survey asked employers to consider the value of advice, the involvement of firms in assisting with retirement planning, the costs and budgeting of providing advice, and the appetite of their employees for advice.

83 per cent of respondents said they believe their workers would benefit from investment in advice.

Fewer firms are also willing to shell out to help employees however – a total of 33 per cent, down 9 per cent from 2017 figures.

While 56 per cent of firms surveyed last year were in favour of investing to help employees make informed retirement decisions, 53 per cent said the same in 2018.

Chase de Vere corporate advice manager Sean McSweeney says: “This is disappointing because employers are well placed to help their employees. This could also be a false economy for employers.”

Will AI change the face of financial advice?

More than a quarter of firms say financial advice is still anticipated as a cost within its 2018/19 budget, down 9 per cent from 2017 to 27 per cent this year.

McSweeney says firms need to ensure they take adequate steps to retain and educate staff.

He says: “Those employers who don’t help may, over time, be faced with an ageing workforce that cannot afford to retire and as a result suffer from lower productivity, succession planning issues and losing younger talent to competitors that provide more opportunity for advancement.

“Intentions may be good, but relatively few employers are willing to spend money to help facilitate the provision of financial advice.”

According to Aegon research findings reported by Money Marketing in May, only 10 per cent of people in the wider public are seeking financial advice.

The provider found 47 per cent make financial decisions on their own, and 40 per cent make financial decisions with a partner or spouse.

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Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Many large employers offer their employees a benefits menu to which, one might reasonably think, the costs of financial planning services could be added. Also, within limits, employers can pay a share of such costs without it being treated as a P11D benefit.

    BTW, from the sentence 83 per cent of respondents said they did not think their workers would not benefit from investment in advice, the second not should be removed.

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