Equiniti suggests that getting people to be smarter in their financial decisions is a key issue currently facing the nation.
The nationwide poll of over 1,000 employees commissioned by Equiniti Employee Services* reported that 81% of employees are currently grappling with everyday financial challenges.
29% of employees are worried about paying off their mortgage and 29% are worried about clearing debts; 19% said they are worried about not being able to retire and 14% believe they won’t be able to get on the housing ladder. 24% are also concerned about not being able to afford treats and life’s luxuries.
Saving for the future was the second highest lifestyle consideration for 37% of employees, just behind improving their work life balance at 42%; 36% of employees were looking for a higher salary, 24% wanted flexible working hours and just 23% saw having a pension as a priority. Whilst the latter statistic is worrying, it may also reflect the growing awareness that financial stability in later life may not wholly be satisfied by a traditional pension plan.
Exactly two-thirds of those surveyed (66%) said that they would take a greater interest in their personal financial planning as a result of joining an employee share scheme at work. This was especially the case for younger employees, with 41% of 18-24 year olds and 36% of 24-35 year olds who said it would make them save regularly for the future.
Phil Ainsley, managing director of Employee Services at Equiniti commented:
“The economic downturn contributed to a long term savings gap which threatens to become a financial time bomb. Our experience shows that on a day to day basis people find it difficult to save, however, when saving is structured, for instance as part of an employee share scheme, it is much easier. We also see much greater engagement amongst younger employees where such plans exist. This suggests that the Government could incentivise the introduction of share schemes, encouraging employers to make it a more attractive option to foster a savings culture that supports existing pension policy”.
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