Improving Financial Wellness

What is Financial Wellbeing?

“A state of emotional and physical wellbeing, produced by a set of conditions and capabilities. It includes making the most of an adequate income to enjoy a reasonable quality of life and having the skills and capabilities to manage money well.” – The CIPD (Chartered Institute for Personnel and Development

How does Financial Education improve Financial Wellness?

Money is complicated which means people are making mistakes and missing opportunities with their finances.

And it’s not just limited to lower earners or younger people.

  • 70% of people eligible for Marriage Allowance aren’t claiming it.
  • There is over £400m in orphaned pensions where people have lost track of their pension pots.
  • Most people are unaware that if an energy supplier is late or misses an appointment, you can claim £30 compensation.

Financial Education is about helping people better understand and ultimately better manage their money. As a result, people are more organised, save more, have less debt and clear financial Dreams & Goals with plans to get there.

9/10 HR and Reward professionals believe a Financial Wellness strategy is best delivered as an ongoing programme of Financial Education.*

*The Financial Wellness Playbook 2018

What’s the Business Case?

With 29.8% of employers already providing Financial Education and 17.3% introducing it over the next year, many thousands of employers have built the business case and are seeing the return on their investment.

It’s simple:

  • Becoming a responsible employer who helps their people manage their money better.
  • Minimising the cost of poor Financial Wellbeing on your employees’ productivity, absence and health.
  • Maximising the opportunities available from improving Financial Wellbeing (in engagement, cost savings, attraction and retention).

In 2017, the Financial Wellbeing market exploded as more employers grasped the extent of the UK’s problem and how it impacts them.

A quarter of respondents (27.5%) to our latest research (The Financial Wellness Playbook 2018) reported that levels of financial stress in their organisation were greater than 12 months ago, and seven in 10 (71.9%) said that financial stress levels had not improved in the past year.

When building the business case for Financial Wellness, you won’t be short of supporting research and statistics. What’s key is making your business case relevant to your organisation and in particular your leaders.

For help creating your own Financial Wellness strategy download our guide here or speak to us.