Benefits for employers providing access to financial advice
18 October 2018
Employers who provide financial advice to their employees will benefit their businesses and could save themselves money, research by Chase de Vere has shown.
In contrast, those who don’t could find they disadvantage their businesses as a result, the wealth manager and corporate adviser says.
The research found that 83% of employers believed financial advice was something their employees would value and benefit from. However, only 33% were willing to pay for advice and just 27% said they were including the cost of advice in their current budget.
According to Chase de Vere, financial advice doesn’t need to be as expensive as businesses fear and if an advice programme were successful, firms could recoup these costs in full.
Sean McSweeney, corporate advice manager, Chase de Vere, said: “Too many employers look only at the headline costs of providing financial advice in the workplace without paying sufficient regard to the benefits it can provide to their employees, their business and also to their bottom line. This could be a false economy.
“Employers who don’t help by paying for advice programmes could, over time, be faced with an ageing workforce that cannot afford to retire and may consequently suffer from lower productivity and succession planning issues. They could find themselves losing crucial younger talent to competitors that provide more opportunities for advancement.”
McSweeney said providing advice could encourage greater levels of engagement with workplace pensions and for companies that use salary sacrifice, each extra pound invested will mean a national insurance saving for the employer.
He added: “These national insurance savings can be considerable and could cover the cost of the financial advice programme or even leave the employer with a surplus. So employers could actually make a profit from offering financial advice in the workplace, especially if their current level of employee engagement and employee pension contributions are low.”
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