5 learnings on what financial education should (and should not) be

As a guide to help navigate these new regulatory waters, Nudge's recent research into the UK financial wellbeing market surveyed 302 reward leaders.

With 95% of those surveyed either considering introducing a programme, in the process of introducing or already supporting their people, this research offers valuable intelligence into this rapidly growing market.

We decided to rip up the corporate rulebook this year and look to the future rather than the past. We didn’t ask respondents what they currently do, we asked them what they want to do around financial wellbeing. The results allow the reward community to plan for the future.

Here is a summary of the key points, which illustrate clearly what the future of financial education in the workplace should be. And what it most certainly should not be:

Learning 1: Financial education should be holistic not restrictive

89% want their programmes to include content on pensions and 87% employee benefits. Additionally, 77% want content to extend to the employee’s personal finances such as elder care, saving and housing.

Learning 2: Financial education should use multiple data points for personalisation, it should not be one size fits all

78% want content and delivery to be based on age with a focus on generational segmentation. However, this isn’t enough for reward leaders. 69% want personalisation to be based upon salary, 66% on financial goals and 56% on benefit choices.

Learning 3: Financial education is giving employees the tools to make their own informed choices, it should not be telling employees what to do.

With an overwhelming majority of organisations concerned about the risk of giving advice, 22% wanted regulated FCA advice delivered to their people. On the other hand, 38% wanted information only. In the middle ground a massive 96% wanted to deliver education and guidance.

Learning 4: Financial education should create positive impact to the employee outside of work it should not be only about the workplace

Unsurprisingly, 92% of reward leaders see the employee being the key beneficiary of the financial education programme. More surprisingly 45% want the employee’s partner to benefit, 27% the employee’s children and 16% the local community.

Learning 5: Financial education should be a force for good. It will not be as effective when inwardly focused.

Post the 2008 financial crisis, CSR has been a significant focus for CEO’s. Reward leaders (particularly those in larger organisations) are seeing how financial education can add value to these initiatives and give them a seat at the top table. 37% of those in companies with 10,000+ employees state CSR is a driver for introducing financial education.

We hope you have found this snapshot useful. View full results.

This article was provided by Nudge.