Page 17 - Savings Psyche
P. 17

This is where the employer can become an active player in      First movers
how much people save.
                                                               In 2019, the Pensions Dashboard is due to become available
We know from the research that huge numbers of people          to employees. It is a legislative step to give UK workers an
today either save in the wrong way, or not at all, because of  extra level of insight into their overall savings situation and
overwhelming choice, perceived risk, a lack of information     thus financial future.
or the belief that the savings options their employer
offers are inappropriate for their priorities. By providing a  Before that happens, British businesses have the
workforce with accurate, relevant and detailed information     opportunity to position their organisation as one that really
about the LISA as a savings option that can be shaped          takes saving seriously.
around individual priorities and lifestyles, employers can
give people the choice they crave, the direction they need,    Benefits matter to employees, particularly when they can
and, most importantly, the savings their future depends on.    have such a positive impact on their personal lives. Just
                                                               look at the reputational boost Virgin Group had when
The employer gains                                             they became one of the first movers on unlimited holiday,
                                                               and the London-based businesses offering graduates a
It stands to reason that a good employer will have its         rental deposit as a benefit. Now, by offering the LISA and
staff’s best interests at heart, which is why workplace        CISA alongside the traditional pension, the race is on for
savings programmes exist. However, there are also benefits     companies to become the preferred employers in their
to employers themselves when employees are able to             marketplace, with a programme that shows that they care
save money.                                                    about their staff at work and at home.

The savings psyche of the UK research shows that over a        For employers, workplace saving is no longer a case
quarter of people (27%) feel that money concerns keep          of offering a pensions package and suggesting that
them from doing their best work. And, on a behavioural         employees sign up. Instead, it is becoming a way to attract
level, having a good pension pot and housing situation         and retain the best staff with savings options that work
means that people feel comfortable about retiring when the     for modern lifestyles and financial priorities, supported by
time is right, rather than hanging on in work purely           accurate, detailed and personalised information.
because leaving or retiring would be severely detrimental
to their lifestyle.

17 The savings psyche of the UK
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