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A joint research project between PayCaptain, a FinTech transforming the way companies pay their employees, and leading behavioural science consultancy, the Behavioural Insights Team, has uncovered new findings around overcoming barriers to saving. 

With economic pressures on employees continuing to increase and one million additional households expected to have run out of savings by the end of 2023 (Source: NIESR), the research has uncovered behavioural biases, security concerns and financial overwhelm as key reasons why employees are failing to save. The research also demonstrates the crucial role that responsible employers can play in promoting and facilitating saving amongst their employees to support them in becoming more financially resilient. 

Key findings from 3046 survey respondents were: 

  • 73% of under 55s said they would use the savings tools if offered by their employer 
  • 67% said they would like to enrol in a workplace pension immediately when starting a new job. Most employers have a waiting period before a new employee is automatically enrolled in their pension. This is yet another barrier for employees who want to build their retirement savings 
  • Breaking down suggested savings to daily amounts reduces financial overwhelm, making employees more likely to start saving PayCaptain, a B Corp, was launched in 2020 with highly automated payroll at the core and a suite of helpful financial services available for employees. In conjunction with the Behavioural Insights Team, PayCaptain has leveraged evidence-based principles to help employers to play a central role in promoting and facilitating easy ways to save amongst their employees in the creation of SmartPay, launching later this year. Anna Buckle, Head of Employee Experience and Financial Wellbeing at PayCaptain, says, “This research has provided much needed insight into more effective ways to overcome the barriers employee’s face when trying to build savings. Employers need to start considering the role they have to play in offering savings tools. This research enables PayCaptain to take payroll saving to a whole new level.” Senior Advisor at the Behavioural Insights Team, Ellie Lugt, says, “Employers have an important role to play in supporting their employees’ financial resilience. Applying behavioural science to digital tools and customer journeys can make it easier for employees to make timely, positive financial decisions in ways that work for them, without taking away their freedom to choose a different course of action. PayCaptain Payroll Solutions Limited, www.paycaptain.com is a FinTech that delivers a fully automated cloud payroll service. The solution contains many unique and innovative features for employees, specifically designed to positively impact financial resilience.