United Kingdom

Younger workforce turning more to employers for financial advice than older generations

December 2015

 

 

Younger employees aged between 18-24 are twice as likely to seek financial advice from their employer than those in their 50s and 60s, new research has indicated.

According to the research carried out by an asset management firm, 17 per cent of younger staff members expect to receive workplace financial advice compared to just 8 per cent of 55-64 year olds.

Chris McWilliam, Principal Consultant at Aon Employee Benefits is not surprised that younger staff are looking for help to manage their finances, particularly as many of them could have debts and student loans to repay. However, he questioned the findings which suggested that older workers are less likely to seek help from their employers:

"Following the introduction of the new pensions' freedoms this year, our experience is that such workers are increasingly looking to their employers for assistance in understanding what these changes mean for them," he said. "Employers are therefore increasingly looking to provide targeted financial education sessions directed at specific age groups and are seeing this type of approach as integral to their ongoing reward, retention and business continuity strategy."

The research also indicated that increasing levels of UK employees across all age brackets are relying on their employer for financial education. 13 per cent expect to receive such advice from the workplace, an increase from 9 per cent in 2014 and 7 per cent in 2013.

But overall, financial advisers, banks and building societies and personal research remained the most popular sources of financial education, whilst friends and family were the most popular information sources for 40 per cent of younger workers.

McWilliam commented: "Whilst it is encouraging that people are turning to financial advisers to help - even though advice costs can be a deterrent for some – turning to friends and family for advice may not always be the best source of information as they are not likely to have enough knowledge to provide more than a basic understanding of financial matters."

He added: "Employers looking to fill this gap by providing access to high quality financial education sessions on a range of subjects are seeing direct benefits of such an approach, as it improves staff morale and increases the level of employee financial literacy, which in turn improves their productivity."

 

 

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