employee wellbeing
Confused about savings, pensions or investments? you’re not alone. We’ve answered the top money questions we get asked in our guidance clinic and share what the people in Ireland are asking today.
Q1: How much should I be saving each month?
There’s no perfect number — but a good rule of thumb is to save at least 20% of your income if you can. Start smaller if needed. What matters most is getting into the habit and saving regularly. We help you figure out the right amount based on your goals — not someone else’s.
Q2: I don’t understand my work pension — what should I do?
You’re not alone. Many people don’t know how their pension works or what they’re entitled to. The first step is to find out what’s being contributed (by you and your employer) and where it’s invested. We’ll break it down and help you see what your pension is worth today — and what it could mean for your future. Look at your payslip as the information is there.
Q3: Should I pay off debt or save first?
It depends. If your debt has high interest (like credit cards), paying that down is usually the priority. But it’s still smart to build a small emergency fund at the same time, so you’re not relying on debt again. We can help you find the right balance.
Q4: Is it too late to start a pension in my 40s or 50s?
Not at all. The earlier the better, yes — but starting now is always better than never. You may also be able to contribute more as you get older, and there are still tax benefits. We’ll help you make the most of the time you have to make the most of your pension.
Q5: What happens to my pension if I change jobs?
Good question. You don’t lose it — but you may need to take action to keep track of it or move it. We’ll explain your options and help you avoid losing out on savings or benefits.
Q6: How do I know if I have the right insurance cover?
Start by asking: If something happened to me, would my family be OK financially? Then look at your income, debts, dependents, and any cover you already have. We’ll do a full review and explain what’s necessary — and what’s not.
Q7: I’ve never worked with a financial advisor — is it only for wealthy people?
Absolutely not. Most of our clients are everyday professionals who simply want to feel more confident about their money. If you’re planning for the future — or just want to get more organised — we’re here for you.
Note: The information contained in this article should not be taken as advice and any information provided or opinions given are not tailored to an individual’s own circumstances.
employee wellbeing
Financial jargon can be confusing, so we’ve put together common handy jargon buster to help you stay on track of what common financial terms mean.
Gross Pay: This is your total earnings before any deductions (taxes, pension contributions, etc.).
Net Pay: The amount of money you take home after tax, PRSI, and other deductions have been taken from your salary.
Credit Score: A number that shows how reliable you are at borrowing money and repaying it. A higher score makes it easier to get loans or a mortgage.
Interest Rate: The cost of borrowing money or the reward for saving it. It’s usually shown as a percentage (e.g. 1% per year).
Income Protection: A type of insurance that pays you a regular income monthly if you can’t work due to illness or injury.
Life Insurance: Pays out a lump sum to your family or loved ones if you pass away during the term of the policy.
Pension: A long-term savings plan to help you afford retirement. Workplace pensions often include employer contributions too.
Overdraft: A short-term way to borrow money through your current account – but interest can be high if you go over your limit.
APR (Annual Percentage Rate): The total cost of borrowing over a year, including interest and any fees.
You can access additional jargon busters explained on your Employee Financial Wellness portal as well as all the latest financial information.
employee wellbeing
The beginning of 2025 has brought a sense of financial uncertainty for many – including the high cost of living and new trade tariffs under Donald Trump have made it even more difficult for people to gain control over their finances.
Our latest 2025 research found that the biggest things that employees have given up on over the last 12 months are savings (29%) and financial concerns over the next 12 months include not being able to pay for basic living costs such as household bills, dental and vet etc (39%), and plans to buy a home (27%).
However, there a steps people can take to improve their financial situation and to help we have listed 5 tips to help people take control of their finances this season.
1.Create a budget that works for you
Start by understanding what money is coming in and going out each month. Include everything – rent or mortgage, childcare, loans, groceries, subscriptions and utility bills. Once you see it all in one place, you’ll know where you stand and where you can make changes.
Tip: use a budget planner tool like the one available from the CCPC, it’s free!
2. Manage your debt smartly
If you have debt, make it a priority to tackle the most expensive ones first. For example, credit cards or over drafts can have interest rates of 13.8 to 23%. Paying a bit more than the minimum can save you hundreds in interest and shorten the time it takes to pay off.
Tip: Look into lower interest options like a credit union loan or Revolut.
3. Build an emergency fund
An emergency fund or known as a ‘rainy day fund’ is money you set aside for unexpected events in the future like a car repair or medical appointment.
Tip: Aim to build up enough to cover 3-6 months of essential bills. Set up a separate savings account and automate a small monthly transfer.
4. Shop wisely
Switching brands and planning your weekly shop in advance can help cut grocery costs. Look out for deals, use discount codes online, and check if your employer offers any savings perks. This can really help when unexpected expenses pop up.
Tip: Try using a shopping list app to stay on budget and avoid impulse buys like AnyList.
5. Be scam smart
Over the last 12 months, 94% of the population have been targeted by scammers. Fraudsters can sound completely legitimate and it’s easy to see why so many are fooled.
Tip: Check if the company is authorised via the Central Bank of Ireland’s register. You can always report scams to FraudSMART.ie
Employee Financial Wellness, employee wellbeing
Taxation & Workers
- The USC will be cut from 4% to 3% on incomes of €25,000 to €70,000, the second consecutive reduction to the USC rate
- The national minimum wage will increase by 80 cent to €13.50 per hour from 1 January 2025
- Entry threshold to 3% rate increased by €1,622 to €27,382
- The main tax credits – the Personal, Employee and Earned Income Credits – will increase by €125
- The Standard Rate Cut Off Point will increase by €2,000 to €44,000, with proportionate increases for married couples and civil partners
- Inheritance tax will increase for all thresholds – Group A up from €335,000 to €400,000, Group B up to €40,000 and Group C up to €20,000
- Exemption from Income Tax, Capital Gains Tax and Capital Acquisions Tax on payments made to women impacted by CervicalCheck failures
- Free schoolbooks initiative extended to transition and senior cycle pupils
- Funding to continue for the school transport fee reduction and State exam fee waiver
- Continued reduction of student contribution fee by €1,000
- Once-off reduction of 33% in contribution fee for apprentices in higher education
- Post-graduate tuition fee contribution increase of €1,000 for student grant recipients
- Double payments of child benefit in November and December
- Double payment of the foster care allowance
- €400 lump sum payment for working family payment recipients
- €100 lump sum payment per child to recipients of qualified child increase payments
- National childcare scheme funding to rise by 44%, resulting in reduction of fulltime childcare costs by €1,100
- New ‘baby boost’ one-off payment of €420 for each newborn child from 1 January
- Free public transport to be extended to children aged five to eight
- 495 new beds to health services across hospital and community services
- Increased access to IVF and Hormone Replacement Therapy to be free of charge
- Increase in numbers working in health service
- 1,600 additional Special Needs Assistants (SNAs) & 768 extra Special Education Teachers
- 1,000 additional Gardaí & 150 extra Gardaí civilian staff
- 350 additional Irish Prison Service personnel
- 400 additional International Protection Office personnel
- Net increase of 400 Defence Forces members in 2025
- The rent tax credit offered to tenants will rise from €750 to €1,000, and to €2,000 for a jointly assessed couple
- An additional €1.25bn will be made available to the Land Development Agency, bringing the total amount of funding for the LDA to €6.25bn
- Help to Buy scheme will be extended until the end of 2029
- Properties worth over €1.5m to pay 6% stamp duty
- Existing 1% stamp duty to apply to values up to €1m and 2% above €1m
- Relief for pre-letting expenses for landlords extended for three years until the end of 2027 to help vacant property owners bring accommodation into the rental system
- Vacant homes tax increased from five to seven times the property’s existing base Local Property Tax rate
- Energy credit of €250 for all households to be paid in two equal payments, one before the end of 2024 and one after
- Proposal for the 9% reduced VAT rate for gas and electricity to be extended for another six months to 30 April 2025
- Further €300 lump sum payment to fuel allowance recipients in November
- Additional €200 for recipients of the living alone allowance
Increase in VAT Registration thresholds for businesses from:
- €40,000 to €42,500 for service only businesses
- €80,000 to €85,000 for goods and services providers
Excise Duty
- Cigarettes duty increased by €1.00 per pack of 20, pro rata increases will be applied for all other tobacco products
- E-cigarettes: introduction of 50c tax per 50ml of e-liquid to commence mid-2025
- Extension of Young Adult and Student Card to cover adults aged 19-25 to the end of 2025
- Free public transport will be extended to include children aged 5-8 for the first time
- €7.50 increase on current rate of carbon tax on petrol and diesel from €56 to €63.50 per tonne of carbon dioxide emmitted from 9 October
- Including VAT, carbon tax increase represents a rise of around 2.1 cent per litre of petrol and 2.5 cent to a litre of diesel
- Increase on carbon tax levied on other fuels, including home heating, to be brought in from May 2025
- Amendment for battery electronic commercial vehicles so people can qualify for €200 vehicle registration tax rate
- €12 weekly increase for Social Welfare Payments, including pensions
- A €300 lump sum payment for Fuel Allowance recipients will be paid in November
- Additional €200 will be paid for those in receipt of Living Alone Allowance
- €400 once-off payment for recipients of Carer’s Support Grant, Disability Allowance, Blind Welfare Allowance, Invalidity Pension and Domiciliary Care Allowance
- €400 once-off payment for recipients of Working Family Payment
- Carer’s Support Grant will increase by €150, to €2,000
€3 billion from the sale of AIB shares will be allocated as follows:
- €1 billion to Irish Water for non-domestic capital investment
- €1.25 billion to the Land Development Agency for the development of social and affordable housing
- €750 million for the development of the Electricity Grid Network
Sources include: rte.ie
Please note: There may be further changes to the above information following the Finance Bill. Every effort has been made to ensure that the information provided here is accurate and up to date (as of 1st October 2024). The information provided is of a general nature and may not address the specific circumstances of a particular individual. Employee Financial Wellness does not accept any liability arising from any errors or omissions.
employee wellbeing
In today’s fast-paced world, financial security and future planning have become very important to a lot of people. When it comes to our money, two key concepts often come up: savings and investments. While these terms are often used interchangeably, they represent distinct financial strategies with different objectives and outcomes. In this blog post, we will delve into the difference between savings and investments, their purposes, and how they can help us achieve our financial goals.
Savings:
Savings refer to the portion of our income that we set aside for future use. It acts as a safety net, providing a reserve of cash readily accessible during emergencies or to meet short-term goals. Savings typically involve depositing money in low-risk, easily accessible accounts such as savings accounts.
Key characteristics of savings include:
- Accessibility: Savings are highly liquid, meaning the funds are readily available for withdrawal whenever required, without any significant penalties or restrictions.
- Low risk: Traditional savings accounts in reputable banks are considered low-risk options, as they are often insured by government deposit insurance schemes. The principal amount deposited is usually protected.
- Minimal returns: Savings accounts tend to offer relatively low interest rates compared to other investment options. The primary purpose of savings is to preserve capital rather than generate significant returns.
Savings are suitable for short-term financial goals, such as building an emergency fund, saving for a down payment on a house, or accumulating funds for a holiday. They provide a sense of security and financial stability, but they may not keep pace with inflation over the long term.
Investments:
Investments, on the other hand, involve allocating funds with the expectation of generating a return or capital appreciation over an extended period. Investments are intended to grow wealth and outpace inflation, enabling individuals to achieve long-term financial goals such as retirement planning, funding education, or growing wealth.
Key characteristics of investments include:
- Risk and return trade-off: Investments come with varying degrees of risk, ranging from low-risk options like bonds to higher-risk options like stocks and real estate. Generally, higher potential returns are associated with higher levels of risk.
- Time: Investments require a longer time horizon, as they are designed to generate returns over the medium to long term. This allows investments to benefit from compounding, which enhances the growth potential.
- Diversification: Diversifying investments across different asset classes helps reduce risk. By spreading investments across stocks, bonds, real estate, and other asset classes, individuals can mitigate the impact of poor performance in one particular investment.
- Investments offer the potential for greater returns compared to savings accounts. However, they also carry a higher level of risk, as the value of investments can fluctuate due to market conditions and other factors. It is crucial to conduct thorough research, understand risk tolerance, and seek professional advice when venturing into investments.
Choosing Between Savings and Investments:
The decision to save or invest depends on an individual’s financial goals, time horizon, and risk tolerance. It’s important to strike a balance between short-term liquidity needs and long-term growth objectives.
For short-term needs and emergencies, savings accounts provide stability and accessibility. On the other hand, investing is more suitable for long-term goals, where the potential for higher returns can help achieve financial milestones over time.
Ideally, a comprehensive financial plan includes both savings and investments. Allocating a portion of income to savings while simultaneously investing for the future allows individuals to protect their capital, meet immediate financial needs, and build wealth over the long term.
Conclusion:
Understanding the difference between savings and investments is crucial for effective financial management. Savings act as a safety net, providing quick access to cash for emergencies and short-term goals. Investments, on the other hand, aim to grow wealth over the long term and outpace inflation. By balancing both strategies, individuals can safeguard their financial well-being in the present while building a solid foundation for the future. Remember, each individual’s financial situation is unique, so seeking professional advice is recommended to determine the best approach for achieving personal financial goals
Employee Financial Wellness, employee wellbeing, Financial Planning, Financial Stress
Our public sector specialists understand the health and wellbeing framework and we can play a key role in supporting employees in maintaining their financial health and wellbeing. We recognise that if financial stress is allowed to take hold and grow then it can adversely affect work performance and/or attendance and quality of life.
Our experience has shown that prevention is better than cure but traditionally there is an obvious gap in the financial planning advice that Civil and Public Sector employees receive. Our unique approach is focused on preventing financial stress through education and short and medium-term goal setting.
Having a clear roadmap means employees will gain more confidence in money management and making important financial decisions and as a result significantly decrease money-related stress.
Our WHO based health intervention methods means that we have a process that really works. Our proven method includes:
This is fundamental to the success of an Employee Financial Wellness intervention. We must understand the attitudes, opinions, trends and existing financial literacy levels of any given workforce. The tools we use include:
- Attitude and Trends Survey
- Engagement Surveys
- Individual Surveys
At the very core of our approach is our education pillar. This pillar is designed to deliver behavioural change to your employees through an educational programme built to help employees understand their financial goals and cater for:
- Life stage financial education including early, mid, late career and retirement
- Event Driven Financial Education including New Starters and Management Programmes
We deliver outcome-based communications in a fun, interactive way which are available for your entire team through our omnichannel delivery including options for in person and remote delivery. Our communications start by delivering group learning webinars/seminars that focus of the various financial life cycle stages of your workforce. We focus our group sessions on different demographics within an organisation including New Starters, Early Mid-career employees, late-career employees.
We move onto our specialist masterclasses that educate your employees on the individual topics that affect their financial lives. Topics include Mortgages Uncovered, Beat the Taxman (legally), Savings and Investments, Budgeting, Retire Well.
During the programme your employees will recognise areas where they may want individual financial guidance which helps them clarify elements of their financial situation and make decisions about the next steps so they have the option of our guidance clinics.
Guidance Clinics
Our individual guidance clinics are also hosted both virtually or in-person and allow employees to ask the questions that are relevant to them and have items they never thought to consider highlighted to ensure that employees are set on the right path to achieving their life goals and dreams. The days of being sold just ‘AVCs’ are long gone. They are 30 minutes long and the employee will leave with some high-level direction and goals to work towards.
Solutions
Employees will be signposted to the right solutions for their particular circumstances which could include a pension provider, their bank or regulated advice through their own provider or through Employee Financial Wellness.. One of the biggest obstacles to improved financial wellness is inaction.
Employees often engage with health promotion supports but without any action or change to their behaviour, they simply fall back into their old bad habits.
Employee Financial Wellness will ensure that employees are informed of the mechanics of how to makes changes to their financial set up which will, in turn, ensure that they arrive at their future financial events fully prepared for the associated cost.
We might end up recommending an AVC, but your employees will understand why and know all about the financial ABCs.
