40% of businesses offer a workplace savings scheme

Research[1]  conducted by Cushon, the workplace savings provider, has found that 40% of businesses now offer their employees access to a workplace savings scheme. Of those employees using the scheme, 32.06% choose to use the initiative because their employer also contributes to their savings and 30.88% like having the ability to save directly from their pay.

The same research also found that 27.35% choose to invest in their workplace savings scheme because it was easy to set up, 25.59% thought that it was better than using high street bank and 25.59% said that colleagues had recommended it. Just under 20% (19.41%) of employees were using workplace savings to make the most of the flexible benefits allowance given by their employer.

Recent statistics released by the ONS[2], found that the level of disposable income being saved has risen from 9.6% to 29.01% this year. With lockdown restrictions stopping us from carrying out our usual activities, such as having holidays, going out socialising and shopping, some UK adults are finding themselves with more disposable income than usual. Not to mention the millions of people now working from home who are potentially saving thousands of pounds on commuting costs.

Cushon’s research looked at how savings habits have changed with the impact of Covid-19 and found that 40% of UK individuals are now putting this money aside so they have something to fall back on should unexpected circumstances occur. Other reasons for saving included putting money aside for retirement (25.99%), saving for a better work/life balance (19.60%), saving a deposit for their first home (17.03%), putting money aside to make home improvements (16.26%) and saving on behalf of their children (15.08%).

Of those employees who are not using their company’s workplace savings scheme, reasons included not wanting another savings account, preferring to use one provider for all finances and potentially being too complicated to set up. Cushon’s products are easy to sign up to and access through its intuitive app, making the scheme accessible for everyone.

Commenting on the findings, Steve Watson, Head of Proposition, Cushon, said: “It’s really encouraging to see that more employers are recognising the benefits of offering employees access to a workplace savings scheme. Financial wellbeing has never been more important and using the workplace to foster greater savings habits is a really effective way of encouraging more people to save.

“Covid-19 has made us all more aware of the need to have a financial buffer in place to protect us in the event of the unexpected. What’s reassuring, however, is just how many of us now recognise the importance of having holistic savings – saving for our short to mid-term priorities but also having a pension and putting money aside for the long-term. For those that can, fostering regular savings habits can really help navigate life’s ups and downs and help individuals feel more in control of their financial situation.”

[1] Cushon research on financial security and its importance – September 2020

[2] ONS Coronavirus and its impact on the UK Institutional Sector accounts – July 2020

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