Helping employees make better decisions for financial wellbeing

Raising awareness on financial literacy is both an employee benefit (supporting attracting and retaining employee strategies) and a useful tactic to assist those employees that do not want to retire due to fear of not having enough savings for retirement but are not being productive and/or fit for work. 

Financial Wellbeing

Financial wellbeing for employees is not merely about balancing the budget, but rather providing them with the tools and education to feel confident in their own financial management and being better prepared to make better decisions now and in the future. 

Recent economic times have taken a toll on employee financial confidence. Various studies show individuals have been feeling stressed in terms of their financial situation: 

• 47% of employees in Australia feel stressed about their finances [1] 
• 52% of employees report financial matters contribute to irritability, anger, fatigue and sleeplessness [2] 
• 59% of employees are concerned about not having enough money to retire when they want to [3] 
• 54% percent of employees say financial or money matters/challenges cause them the most stress 

What can Employers do to help their employees make better financial decisions and prepare for their future after they leave the company?

With 55% of financially stressed employees embarrassed to seek guidance on their finances [4], one way of empowering the workforce is by providing financial education. By increasing financial knowledge, they can make better and more informed decisions whilst working, in the lead-up to retirement and during retirement. 

Employers can consider the following actions: 

• Provide general financial education to their employees. 
• Provide a Financial Wellbeing program. 
• Discuss career planning at all stages and encourage planning for retirement early. 

 Aon can help assist you with:  

• Reviewing your current programs – whether run in-house or by a third party 
• Designing and running financial wellbeing programs; and 
• Advice on talent attraction and retention strategies. 

The specialist team at Aon’s Wealth Solutions are happy to assist with consulting services for companies looking to access further support. Contact us for more information. 

References

[1] Your Financial Wellness User Insights 2021

[2] Purchasing Power Whitepaper Financial Wellness: Power Behind the Purchase

[3] Aon 2018 Financial Wellbeing Study

[4] 2022 PwC Employee Financial Wellness Survey