UK companies not providing financial education

More than half (52%) of companies do not provide any financial education to their employees despite half of employees requesting access to it, according to a new survey.

The research was carried out on behalf of employee benefits adviser Secondsight, part of national firm of financial advisers, Foster Denovo.

The need for financial education would appear to be urgent as the vast majority of employees have no plan to provide for their future. Less than 20% have a solid financial plan in place and only 38% have a vague idea about how to manage their money. Most employees also have no idea how much their pension is worth, with only 11% knowing how much they will retire on.

Darren Laverty, director of sales and marketing at Foster Denovo, said: “Clearly, employee demand for financial education is not being met, and companies are failing to support their staff with sound financial and retirement planning.

“Organisations across the UK need to place real emphasis on the need for financial education in the workplace. Providing it can be achieved at a relatively small cost and should be seen as an investment, because the benefits significantly outweigh the costs.

“It is particularly important to provide financial education for young people, who may be saddled with student debts and struggling to get on the housing ladder.  If companies help younger members of staff, they are inclined to be more loyal and stick with them.”

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