Expert view: People risk drives future financial wellbeing strategies
This year’s Financial Wellbeing Research has provided some key insights into financial wellbeing issues affecting employees that all employers should be aware of.
The main financial resilience risk factors that are driving financial wellbeing policy either now or in the future include the cost of living, gender gaps, cost pressures on working parents, redundancy of employees and the cost of housing.
The majority of employers also identified improving mental wellbeing linked to financial stress as the top people risk. Additionally, increasing financial resilience and managing the impact of an ageing workforce are set to be areas of focus.
Retirement adequacy
In fact, the survey delved into the anticipated challenges that employers thought could impede employees in reaching retirement adequacy. The top three include personal financial pressures, low financial literacy around pensions, and pension contributions being too low.
Joining pension schemes early and being in the right investment for the long haul significantly boosts retirement adequacy. Financial education can switch employees on to better understand and engage with their pensions, as well as helping them to improve money management so that saving for the future becomes more affordable. Employees approaching retirement require financial guidance and access to regulated advice to help them make the most of their lifetime savings and avoid costly missteps.
Breaking down barriers
The Financial Wellbeing Research 2025 identified some of the key barriers to improving financial wellbeing. This includes employees not knowing where to start when asking for help, as well as underused benefits. To overcome this, it’s important to ensure that employees are aware of all the support available, how benefits can work together, and how to access them and use them to their advantage. This is why financial education in the workplace is so important, as it can not only help develop understanding and encourage engagement but is also a catalyst for behavioural change and action.
Another barrier identified is concern over liability when providing financial support to employees. Many employers now turn to financial wellbeing specialists to provide support. However, implementing robust processes – including carrying out due diligence on providers before proceeding – is crucial and can help alleviate any concerns over liability.
The future of financial wellbeing provision
It’s positive to see that many employers are focused on putting support in place to improve financial wellbeing. Popular services include financial education, one-to-one guidance and advice. There is also growing interest in savings products that help build financial resilience such as Workplace ISAs.
Providing a range of financial wellbeing benefits that are aligned in strategy should help employees feel financially secure, no matter their circumstances or the challenges they are facing. Ultimately, this has to be a win for employers and employees alike.
Supplied by REBA Associate Member, WEALTH at work
WEALTH at work is a leading financial wellbeing and retirement specialist - helping those in the workplace to improve their financial future.
