A recent survey carried out by Willis Towers Watson (WTW) has unveiled that a substantial 59% of employees are in need of increased support from their employers in the realm of financial wellbeing within the next three years. The survey, encompassing 6,000 UK employees at medium and large private sector employers, has spotlighted the disparity between the aspirations of employees and the priorities established by employers in the realm of financial wellbeing.
The survey’s findings have also underscored that a significant 45% of employees feel that they are not on a positive trajectory with their finances, while 28% anticipate their financial situation to deteriorate over the next year. Moreover, it has been noted that 59% of employees are experiencing adverse effects on their overall wellbeing due to financial concerns, resulting in heightened stress and anxiety.
Notably, the survey has brought to light that nearly four in 10 (39%) workers aged 50 and above envision working beyond the age of 70, marking a substantial increase from previous years. Furthermore, 79% of employees have confessed to not saving as much for retirement as they ought to, with 47% expressing uncertainty about their readiness for retirement.
Financial anxieties have also emerged as a pervasive issue, with 89% of employees voicing worries about meeting basic living expenses. Additionally, the percentage of employees living from one paycheck to the next has risen from 36% to 40% over the past year, and the proportion of those feeling financially worse off compared to the previous year has escalated from 24% to 40%.
In response to these disconcerting revelations, Helen Gilchrist, the head of defined contribution consulting at WTW, has stressed the imperative for organisations to take proactive steps in enhancing the financial wellbeing of their employees. Gilchrist has underscored the significance of furnishing comprehensive education for employees to aid in financial planning and address financial shortfalls, in addition to ensuring that employees are connected with pertinent components of their total rewards package.
Moreover, Gilchrist has emphasised the crucial role of employer retirement programmes, particularly defined contribution plans, as the primary avenue for employees to save for retirement. She has urged employers to align their focus with employee value, cost pressures, and talent objectives to ensure that benefit programmes effectively support retirement and financial wellbeing initiatives.
In conclusion, the survey conducted by WTW accentuates the urgent need for employers to give precedence to the financial wellbeing of their employees. By addressing these concerns and offering the requisite support and resources, employers can contribute towards enhancing the overall wellbeing of their workforce and cultivating a more positive and secure working environment.