A third of people believe there’s a 50% chance they will lose their job when furlough ends – here’s how you can help
The third annual World Wellbeing week made much of the effects of Covid-19 on our wellbeing.
Mental, emotional, physical, social, and environmental factors all play their part in our general wellbeing.
And the global pandemic has affected all aspects of our wellbeing. Even if we’ve escaped catching it (so far) no-one has been left unscathed by the various knock-on effects over the last 18 months.
While some have seen financial gains due to lockdowns and restricted spending opportunities, others have been negatively impacted by reduced income and redundancy.
20% of UK households had to dip into their savings due to Covid-19
According to Bank of England figures, although 28% of households managed to increase their savings as a result of Covid-19, 20% were forced to dip into their emergency funds.
Similarly, the FCA Financial Lives Survey 2020 states that over a third of adults (38%) have seen their financial situation worsen because of the pandemic.
Workers over 50 experienced the highest rate of redundancy during the pandemic
Workers have also suffered. Although younger people have been most affected overall, now the over-50s are more at risk.
According to the Office for National Statistics, workers over 50 experienced the highest rate of redundancy between December 2020 and February 2021.
They account for over a quarter of those furloughed, with 3 in 10 believing there’s at least a 50% chance they will lose their job when the government furlough scheme ends.
Money remains the biggest cause of anxiety for UK employees
Perhaps unsurprisingly, given the economic uncertainty caused by the pandemic, the Employer’s Guide to Financial Wellbeing 2020/21 finds that money remains the biggest cause of anxiety among UK employees.
Considered to be “the most comprehensive annual survey of employees’ financial health across the UK”, the research also revealed that:
- 26% of respondents worry about money on an ongoing basis
- 22% are concerned about their career
- 18% worry most about their health
- 14% worry most about their relationships.
What you can do for clients affected by Covid
When the world is in flux, and lives are affected on the scale they have been by the pandemic, many people seek reassurance from those they trust. This is the thing to keep in mind when faced with a client whose finances have been negatively impacted by the pandemic.
Chances are, you’ll already have doled out a lot of reassurance and helped clients keep calm and stay invested in the face of falling markets, especially in March 2020. But now, with the end of the government furlough scheme edging closer, 50-to-69-year-old workers are likely to face “significant challenges” in finding a job at the end of September.
The scheme has seen many changes since it was first introduced in March 2020. From 1 July, employers have had to pay 10% of wages for their furloughed staff while the government pays 70%. But, on 30 September, the government scheme will be withdrawn completely.
Again, reassurance is key. You may not be able to help your client find a job, but you can give them detailed information about their financial position, which, in turn, will help them understand all the options that may be available to them.
Your expertise improves financial wellbeing
Poor financial wellbeing is not limited to those on low incomes.
The Money and Mental Health Policy Institute reports that a third of C-suite executives, and 1 in 3 managers, have poor financial wellbeing. And people earning over £90,000 a year have almost the same level of financial anxiety as people who earn between £10,000 and £30,000 a year.
Another study from Aegon found that more than half (55%) of average earners worry about money, compared with 1 in 3 (33%) of top earners.
People recognise the emotional benefits of financial advice. Research from Royal London found that clients of financial advisers reported greater confidence, being in control, and increased peace of mind as top benefits.
- 34% said that access to financial expertise made them feel more confident in their financial plans.
- 34% said it helped them feel in control of their finances.
- 32% said contact with a financial adviser gave them peace of mind.
How AdviceBridge can help
The AdviceBridge platform helps you deliver a personalised service to clients efficiently and cost-effectively.
The app enables you to communicate and engage with clients from all walks of life, no matter where they are, specifically those who traditionally prove unprofitable.
For older clients, concerned about their career prospects, the app shows what they need to consider when planning for retirement. Including how to avoid the pitfalls, make the most of their savings, check their goals are on track, and improve their financial resilience.
The white-label app gathers personal and financial information from the client, digitising many of the manual, time-consuming processes, and so allowing you to focus on the relationship instead of the admin, research, or reports.
The financial planning platform enables you to work more efficiently and extend your services to more clients through automating many of the manual processes involved in dealing with client reviews, portfolio analysis, and day-to-day engagement.
Whether you want to spend valuable time with your clients, make your business more cost-efficient, or automate your advice journey, the platform is great for maximising profits.
Get in touch
If you want to find out how AdviceBridge can help you grow your business, please get in touch. Email firstname.lastname@example.org or call us on 020 3925 3850.