Workplace saving could help employees ease cost of living crisis

With more than 60% of people in work worrying about their financial commitments, a savings scheme could be a good way to build their financial resilience

The cost of living continues to bite, with people increasingly worrying about meeting their day-to-day financial commitments.

Research from The Building Societies Association showed that more than six in 10 (61%) of people in work are finding their bills and credit commitments a burden.

For those in a position to save, a workplace savings scheme could help them build financial resilience.

This is where employers could help. By offering workplace savings alongside a workplace pension, employees can make regular savings directly from their wages.

The workplace saving alternative

Workplace saving and investment accounts can be an alternative where money can be accessed more readily than a pension. Keep in mind that investments should always be made for the long term – at least five years.

“Similarly to pension savings, the automated ‘set and forget’ nature of this process makes it easy for people to save by making it habitual and effortless,” says the Money and Pensions Service.

The BSA research shows half of employees (50%) who aren’t currently offered workplace savings would be interested in joining.

Beating money worries

The benefits are more than just financial. More than one in four (27%) of those surveyed said money worries had affected their ability to do their job.

Of those whose money worries had impacted their work, nearly two-thirds (60%) said they’d be interested in a workplace savings scheme if offered to them.

Being able to access and build savings through the workplace could have a powerful impact on mental health and productivity, as well as financial resilience. Having some kind of financial buffer could be vital in helping people navigate these difficult times.