Research conducted by Cushon, the workplace savings provider, has found that 42% of people say they are not saving enough to consider themselves financially secure. With 87% of employers saying that financial worries have a negative effect on an employee’s performance, workplace savings have never been so important.
The research looked at views on financial security and what it means for different people. Of those who are not sure they would consider themselves to be financially secure, 31% said they do not have enough disposable income to feel financially secure or are in a position to build a level of financial resilience. This was particularly the case amongst those aged between 16-34 years.
Of those surveyed, 17.78% said they didn’t know how to become financially secure. This was found to be much higher amongst women with 23.97% stating this as an issue in comparison to 10.58% of men. 8% of respondents said they had too many other debts to worry about first.
Previous research carried out by Cushon during the first lockdown, found that 78% of UK adults across all age groups agree that the Covid-19 pandemic has made them realise that having accessible savings is very important. 16% of people worry about how to manage credit and debit card debt and 16% are concerned about how to save consistently. What people worry about is age related with 22.5% of under 35-year olds wondering how they will afford to buy a new home. Just 7% had no financial concerns at all. The latest research found that 40% of those saving money right now are putting cash aside so they have something to fall back on should the worst happen.
Commenting on the findings, Steve Watson, Head of Proposition, Cushon, said: “Earlier this year, Cushon research revealed that 70% of individuals felt their mental health was affected by financial worries, highlighting just how important this issue can become if not managed properly. Being financially comfortable means very different things to different people. Having a financial buffer in place, so that if the worst should happen, individuals feel better prepared to deal with the situation.
“It’s concerning that 42% of people recognise that they are not saving enough to be financially secure. But this can be remedied somewhat through education and more clarity around financial tools to help people understand what they need to do to be more financially resilient. Savings are accessible to all and putting just £10 aside each month direct from pay through workplace savings schemes can help people grow savings so it becomes a habit and starts to build that financial resilience that protects people’s wellbeing and mental health – not just for now, but for their long-term future too.”
Many employers are looking for innovative solutions to help support their workforce with their short- to mid-term priorities which could include anything from saving for a deposit for a home through to managing credit card debt. Offering a workplace savings scheme is a great way to help build regular savings habits so that employees feel more in control of their financial situation. Taking away money worries leaves employees better able to concentrate at work leading to increased productivity and commitment as a result. It’s a win-win for everyone.