Money Saving Tips for Employees

Supporting Financial Wellness into the Future – Pensions

The mindset of a workforce can have a huge impact on the levels of productivity, efficiency, and quality. All of these are bad for the overall health of the company and its bottom line. Financial worries are amongst the top reasons for employee stress. Helping them to secure their own financial future will reap benefits at every level.

The vast majority of people have short-term financial worries, making their mortgage payment or repairing their car, but it’s also bigger questions that are often always lingering in the back of their minds that create long-term stress and unhappiness.

  • Will I be able to afford to retire when I want?
  • Will I be able to survive on my pension?
  • Should I have started a pension by now?

With the ever-changing workplace, employees feel under a lot more pressure to be responsible for their pensions and retirement planning.   The number of people in the workforce with a pension is reducing and your organisation can help with changing this statistic and reducing financial stress for your employees.

While these deep questions can always be deferred to a later date, as the problems aren’t immediate, the impending doom of having to face up to these realities can linger for many years. Thankfully, employers are becoming more aware of the substantial benefits of providing support with answering these questions. 

Demystifying Pensions – The Fear Factor

Even the word “pensions” tends to initiate a knee jerk reaction in most people to turn and run away. Through fear of knowing that it is very likely, we are going to hear something that we already know but don’t want to face up to or indeed from a fear of the topic being simply too jargon-filled to get any sort of clarity from it!

Unfortunately, we always tend to fear those things that we don’t understand, and I am almost certain that most of us are unlikely to put our money somewhere that is shrouded in mystery. Hence in Ireland, the uptake is so low in pensions even though the vast majority of us believe that having a significant pension at retirement is a pretty good idea.

I love the idea of auto-enrolment into pensions because it simply reverses the decision. An employee will be required to opt out of a pension plan and most won’t bother, simply because they know its good for them!

At Employee Financial Wellness we have broken our retirement educational programme into 4 sections.

  1. The Trends
  2. The Numbers
  3. The Solutions
  4. The “at retirement” options.

The reason we have taken this approach is that the aim of the programme is to inform. We believe that information reduces fear. Reduced fear leads to reduced financial stress and ultimately leads to happy healthier more prepared, in this case for retirement, employees. Education is the key!

Multigenerational Workforce – Different Needs for Age Groups

For the 1st time in history, there are 5 generations within the one workforce. And each of these generations, if I was to assign them a characteristic, would be entirely different.

Those approaching retirement today tended to stay in “a few” jobs in their careers, had shorter mortgage terms which allowed for a late-career focus on retirement and tended to have a family earlier. 

The employees entering the workforce today are likely to have in excess of 8 different employments.  They will perhaps rent their whole lives or have a much higher propensity to travel, live in the moment and start a family later in life.

Now I am not one for tarring entire generations with the one brush but for the purposes of this article, I thought it was important I did to support my next point.

All generations will need to deal with their futures. All of them. The trends are all moving in the one direction as we are living longer, healthier lives and retirement ages being pushed higher and higher.

It’s for these and many more very sensible reasons that it’s crucial that employees of all generations are provided with information that best allows them to make an informed and sensible decision for themselves.

We now structure our Employee Financial Wellness seminars at an early career, mid-career and late career as each demographic has very different interests, wants and needs.

At Employee Financial Wellness our goal is to educate and inform employees. To demystify their financial worlds and to reduce the fear of the unknown which in turn will eliminate that financial stress that lingers with ongoing uncertainty!

Nick Lawlor

Managing Director

Nick is a Certified Financial Planner, Qualified Financial Adviser, Specialist Investment Adviser and the Managing Director of New Beginning Financial Services.   Nick leads the Employee Financial Wellness team and is responsible for all elements of the service from tailored programme design to implementation.

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