Why offering employees retirement planning advice today is essential for a successful tomorrow

Creating a great Employee Value Proposition (EVP) is a top priority for businesses right now – and that means providing workforce benefits that go beyond the superficial. Helping people plan for the future by offering forward-looking financial advice shows that you’re not only interested in their current work and life; you also care about their future wellbeing. Independent research commissioned in 2019 by HUB Financial Solutions has found that most companies are interested in adding financial wellbeing support to their employee benefits package. Here are five reasons why that makes sense.1. The best time to plant a tree was 20 years ago, the second best time is now.Many people have little time to think about life beyond work, let alone how they’ll pay for everything on their bucket list! Those who want to explore their options and realise their ambitions need to do their homework, yet navigating pensions, savings and investments can be daunting. Even those approaching retirement are often unable or unwilling to pay a financial advisor for personalised advice. So, there’s a real need for straightforward, accessible financial advice and guidance on life after work; and an opportunity for employers to step in and plug the ‘advice gap’ by offering this as part of their wider employee reward scheme.Indeed, HUB Financial Solutions’ research found that around two thirds (65%) of employers are interested in offering online retirement planning advice to workers. And the bigger the organisation, the greater the interest in supporting employees in this way. A huge 84% of companies with 250+ employees are interested in providing a service of this kind. 2. Financial wellbeing is high on the HR agendaThe economic hardships, furloughs and redundancies of the pandemic have increased anxieties about the future for many. Research by CIPD has shown that 68% of organisations are aware their workers’ financial wellbeing has worsened since Covid hit and nearly a quarter say this is a significant cause of employee stress. Yet financial wellbeing continues to be neglected in employee benefit programmes, even if this is starting to change. The CIPD research showed that in 2021, just 19% of HR professionals said their company takes a strategic approach to employee financial wellbeing (up from 13% in 2019), and only 13% believed their organisation allocated enough budget to this area.With financial wellbeing rising up the HR agenda, offering retirement planning advice and guidance can be a practical and affordable way to provide employees with the insight that they have the resources to make confident decisions about their future.3. If you want great talent, offer great benefitsThere’s a war for talent going on. Little wonder, then, that the HUB Financial Solutions’ research showed that just over half (51%) of companies choose employee benefits that will keep them competitive with what peers are offering, with this rising to 64% among bigger organisations. Paying attention to employee financial wellbeing is one way to stay ahead of the game. And the research found that offering retirement planning services was of particular interest to the IT and computing, legal, infrastructure, wholesale and retail industries – all sectors facing a battle to attract and retain the right talent.4. Employee rewards need to be relevantNo employer wants to invest in employee benefits that are irrelevant to their people. As the survey found, the majority (58%) of businesses choose to offer benefits that are best suited to their workforce demographics. This is a key consideration given the changing make-up of today’s workforces. A third of all UK workers are now aged 50 or above; four million more than there were in 2000. Catering for the concerns and priorities of these employees, including retirement aspirations, in your EVP will become more important than ever as the average age of workers continues to climb.5. Financial planning needs to fit into daily lifeWith so many people living and working for longer, today’s retirees often have complex responsibilities to plan for alongside their own life goals. Whether they’re hoping to help their children buy a first home, support elderly relatives or travel the world, decisions taken well before retirement can have a huge impact on what’s achievable later. Financial planning advice and guidance is invaluable to every employee, because no matter where they are in their career, they can then take positive steps to build the future they want. But in our pressured, time-poor world, people want to access jargon-free advice, and clear illustrations of their finances, at a time and place that suits them. Interactive services such as HUB Financial Solutions financial wellness services can provide employers with a cost-effective way to offer all of that, while giving employees a clear picture of their financial future.To find out more about HUB Financial Solutions financial wellness services or to discuss adding them to your employee benefits programme, visit www.hubfinancialsolutions.co.uk/financialwellness.

Why offering employees retirement planning advice today is essential for a successful tomorrow

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