Expert view: The strategic advantage of a financially educated workforce
Workplaces are continuing to become more diverse in age as employees remain in the workforce for longer. This generational shift is reshaping expectations around financial wellbeing, employee benefits, and the role of employers.
While each generation has always had its own priorities and financial challenges, failing to understand the challenges faced by different generations within the workforce can lead to friction, misalignment, and ultimately, lower engagement and productivity.
Employers have the opportunity to acknowledge and adapt to these evolving needs to foster a financially resilient workforce.
One of the most pressing concerns for younger generations, particularly Gen Z and the emerging Gen Alpha, is financial independence. Unlike previous generations, many may not benefit from inherited wealth or financial support from older relatives.
With wage growth failing to keep pace with house price inflation, homeownership may seem to some like an increasingly unattainable goal. It might be that in the future, there is a slight shift towards a rental model more common in other countries. This could challenge long-held UK homeownership ideals and means that younger employees will need to budget for housing costs as part of their retirement income needs.
Despite being part of the national curriculum in England, provision of financial education in schools is often mixed. Many employees enter the workforce with limited understanding of taxation, interest rates, pensions or savings.
Employers are the primary source of income for most people and are therefore in a unique position to fill this gap. Providing financial literacy training tailored to different life stages can help employees build financial resilience, prevent impulsive financial decisions and foster long-term security.
Financial education should extend beyond the basics of salary and retirement savings. Employees of all generations could benefit from understanding the evolving financial landscape, including tax changes, state pension implications, and savings opportunities such as ISAs.
Research from Aviva’s Working Lives Report 2024 found that more than half of employers (56%) think their employees are worried about their financial wellbeing. This issue is unlikely to go away if not tackled.
By addressing financial literacy gaps, fostering inclusion, and promoting open conversations about money, businesses can empower employees to navigate their financial futures with confidence.
A financially educated workforce is not just a benefit to employees—it’s a strategic advantage for employers looking to enhance retention, engagement, and overall workplace satisfaction.
Supplied by REBA Associate Member, Aviva
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