The subject of Financial Literacy and its effect on the workforce is one that is found consistently across all aspects of workplace research. Below, I have brought together some of the most relevant facts and figures posted recently from various sources to bring to life the need to provide robust, wide ranging, accurate financial information to employees. The benefits of doing so are far greater than the costs.
All from recent research:
“Almost half (48%) of over 2,000 employee respondents rated their financial wellbeing as average, poor, or very poor. Feeling this way naturally has many consequences, with respondents listing impacts such as more stress (73%), poor mental wellbeing (57%), and less confidence in their personal lives (37%).”
“Of the employees who do seek out financial information, the top cited source was friends/family (43%), followed by search engines (30%), financial advisors (20%), YouTube (17%), and lastly their workplace (12%).”
Source: Pluxee – Money Mastery research
“With employees facing pressures from housing costs and student loans through to debt and inadequate retirement savings, employers are investing to tackle these challenges in order to retain, recruit and engage. This builds on findings from REBA’s Financial Wellbeing Research 2023, which revealed that 74% of employers plan to join up their financial wellbeing benefits in the next two years.”
Source: REBA – Benefits Design Research 2024
Research by Salary Finance estimates that money worries cost the UK economy £120 billion and 17.5 million lost hours of work.
Source – Salary Finance report.
CIPD research suggests that many large organisations view supporting financial wellbeing as an ethical responsibility, and 85% cite their reason for expanding financial wellbeing initiatives as being ‘the right thing to do.
Further evidence provided in the comprehensive – Everyday Financial Needs section of the Source Schroders Lifetime Savings Initiative Report
- 1 in 4 Adults have low financial resilience – Source: FCA FLS.
- 22% Of adults borrowing more money to keep up with living costs – Source: ONS.
- 1 in 3 Adults experiencing anxiety over paying bills – Source: Mental Health Foundation.
- 15th The UK ranks 15th out of 29 OECD countries in terms of financial literacy – Source: CBI.
- 1 in 6 Adults in England have the literacy level of a 5–7-year-old – Source: National Literacy Trust.
- 14% Of defined contribution pension savers are on track to meet their income target – Source: Phoenix Group
- 47% Of UK adults do not feel confident making financial decisions – Source: Money and Pensions Service.
- 17m Adults in the UK aren’t saving enough for retirement – Source: Phoenix Group.
The statistics on this area speak for themselves in terms of the need to provide simple educational resources at employee level.
Get in touch and we can give you a demonstration of the site. The cost will not be a barrier, even for the smallest employers.
