5 top tips to supercharge workplace savings and good savings habits

Building financial resilience isn’t just about the long-term. Employees need to build their wider financial resilience in the short and medium term too.

If employees are distracted by short-term financial pressures, it could have a powerful impact on mental health and productivity.

Employers can do more to prepare their employees for life’s rainy days by offering wider workplace savings vehicles and building on existing pension habits to strengthen financial resilience.

1. Include rainy day funds to build short-term resilience

It helps to be financially prepared when the unexpected happens. The HL Savings and Resilience Barometer (2025) found that only 52% of households have enough emergency savings, so encourage employees to build a cash buffer to cover 3-6 months’ worth of essential living expenses.

Having cash savings is one of the key building blocks of financial resilience. It’s a simple way to support your employees’ financial wellbeing and help them build short-term financial resilience.

Offering employees access to cash savings accounts as part of a benefits package helps them get started with the basics and lays the foundation for them to consider other financial needs.

2. Flexible savings for every life stage

Workplace savings vehicles play a vital role in supporting employees at every stage of life. From helping to get on the property ladder, or building a nest egg for children, to providing alternative savings options for higher earners when pension contributions are capped.

Individual Savings Accounts (ISAs) are a way for people to save and invest for the medium term in an account that is more accessible than a pension. Pensions can’t usually be accessed until 55, or 57 from 2028.

And with ISAs being free from UK income tax and capital gains tax, there’s an added benefit for higher earners who have a smaller savings allowance and pay a higher rate on the excess.

With both cash and stocks & shares ISAs on the market, employees can use them to save or invest for all of life’s milestones, with the comfort of knowing they can access their money quickly.

A Lifetime ISA can help employees get a foot on the housing ladder and make the most of a 25% government bonus each year.

A Junior ISA offers families the opportunity to save into an account designated for their child, free from UK income and capital gains tax.

General investment accounts can also help those employees who’ve reached their ISA allowance but still want to grow their extra cash.

When offered through the workplace, employees can benefit from more competitive charges which saves them money. But they should remember that unlike cash, investments can fall as well as rise in value, so they could get back less than they invest.

3. The benefit of payroll savings

Unlike separate, individual accounts, the automated ‘set and forget’ nature of payroll savings means that workplace savings contributions are deducted directly from an employee's salary.

Offer the convenience of regular contributions made directly via payroll to make saving and investing more accessible for everyone.

4. Build in behavioural nudges

Small, timely prompts can lead to sustained action. So build in simple and personalised nudges to remind employees to add money to their savings accounts at key milestones and times throughout the year.

Onboarding new joiners, and for pay rises and bonus windows are good examples.

5. Build confidence through financial wellbeing

Having a holistic financial education programme is a great way to empower your employees. It gives them the confidence to make better, well-informed financial decisions. It also helps to reduce employee stress and increase productivity.

Tailor content to every life stage and help employees understand the benefits of tax-efficient workplace savings vehicles.

Financial education works when it’s specific, relevant, and action oriented. Provide them with the tools they need, such as calculators and planning resources, as well as one-to-one meetings, group presentations and webinars.

Keep language simple, avoid jargon, and embed calls-to-action in learning content so employees can act immediately.

This article isn’t personal advice. If you’re unsure of a course of action for you or your employees’ circumstances, please seek advice. Tax rules can change and benefits depend on personal circumstances.