Providing corporate employees with financial wellbeing is a must highlighted by the cost of living crisis
The cost of living crisis is hitting everyone hard; inflation is hovering around 10.1% and interest rates are on the rise. All of this is putting financial pressure on households across the country.
Fast-rising prices affect wellbeing by creating uncertainty and worries. This is especially true for those approaching retirement.
Investment clients have also been faced with volatile markets and their portfolios may have been affected.
Put together, there’s a lot going on and financial wellbeing is at the forefront of many people’s minds.
While not everyone can afford the luxury of having a personal financial planner, most people are employed. So, if your firm has corporate employee clients, it may be helpful for you – and the business employing your services – to provide financial wellbeing support.
Financial wellbeing isn’t just about your financial position here and now
Money worries don’t just affect lower earners. They can have a huge impact on many people’s mental health, whatever their salary.
Financial concerns and stress can lead to sleepless nights, anxiety, reduced motivation, and poor concentration. So, it’s easy to see how this could have a negative effect on people’s work.
Financial wellbeing is about feeling secure and in control.
There’s a great opportunity to support your corporate clients’ employees, contributing to good mental health, helping people have an easier time balancing their finances and their wellbeing.
However, with the current economic crisis, cutting spending on financial products may be one way your clients are looking to save money. For example, many people may be:
- Dipping into their savings accounts
- Thinking about contributing less to their pension
- Considering reducing their insurance cover.
All this could have a detrimental impact on their financial wellbeing. So, here are five ways to support the financial wellbeing of group employee clients during the cost of living crisis.
5 ways to support employee clients’ wellbeing during the cost of living crisis
1. Offer financial education
Financial education can raise awareness and confidence and can help employees to develop the tools they need to deal with the complexities of their financial lives.
From teaching people about the importance of budgeting to helping them focus on their long-term retirement goals, understanding their relationship with money and giving them the tools they need to take control is invaluable.
2. Teach employees how to think long-term and run regular retirement seminars
Helping people to gain the confidence that they will be able to enjoy a comfortable life when they retire is a big part of the financial wellbeing.
Knowing the right time to give up work isn’t always easy. Employer-sponsored retirement counselling can help. By receiving guidance on the financial side of their decision, employees can enter retirement with confidence.
So, consider offering a retirement planning service that covers the financial needs of those approaching retirement.
Group seminars could cover topics as far ranging as:
- State Pensions
- Workplace pensions
- Other investments
- Tax planning
- Later-life care
It may also be a good idea to encourage employees to attend with their partners so that their retirement plans can also be considered.
3. Make financial advice accessible
An annual financial review can provide reassurance and an actionable plan, both of which can go a long way to improving financial wellbeing.
Reviewing all areas of an employee’s finances will allow opportunity to identify any gaps or risk areas. You can then add value by recommending appropriate steps to help individuals achieve their goals.
4. Consider protection
Consider what protection benefits are available to employees as work perks and what you could offer to fill any concerning gaps.
Should the worst happen, knowing there is a financial safety net can help provide invaluable peace of mind to employees and their families.
5. Maintain regular contact
With interest rate rises, inflation, and the possibility of a recession, there’s a lot to worry about right now.
The current climate is causing anxiety to many and regular contact with a financial expert they can trust could be key to providing invaluable reassurance. Knowing that you are on the other end of the phone or email and seeing regular updates from you could help to bring some peace of mind.
Additionally, having online portals or client-facing apps can help to reassure your clients. Using technology like AdviceBridge could really support your clients. They can easily check their retirement savings, changes in taxation, and view planning advice 24/7.
Plus, the AdviceBridge app alerts you to any financial scenarios your client may run, allowing you to step in and provide timely advice.
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