Could the workplace help to improve financial literacy and wellbeing?

Over half of UK adults (54%)1 say they are becoming increasingly concerned about the risk to their finances, and a similar number (52%) believe the pension system,2 will become more complicated in the future, and exceed their levels of understanding. A third (34%) worry they do not know enough about money.

Yet many have never seen a financial adviser, nor would they be swayed to in the future, no matter the circumstances.3 In fact, three quarters (75%) of the nation are classified as ‘disengaged’4 with financial advice as shown in a new research paper, ‘Future of Advice - State of Flux’.5

Taking into account the nation’s varying levels of financial literacy, plus significant internal and external pressures on financial advisers and businesses, it begs the question as to whether there is a common solution. One that can help to bridge both the advice gap, whilst also improving financial education and wellbeing.

With the introduction of auto-enrolment, and many employers offering wider employee benefits and perks, could the workplace be the answer? One in 10 (11%)6 who are amongst those ‘disengaged’ with advice, appear to be advocates already. They say that partnering with their employer would be ‘helpful’ and potentially sway them to become engaged with financial advice.

Tom Evans

Managing Director, Retirement, at Canada Life commented:

“Levels of financial literacy in the UK are poor, with studies suggesting we lag behind other developed countries. This may well reflect just how difficult the UK financial system is to navigate.

“Although the complexity of the issue cannot be resolved overnight, we need to look beyond traditional avenues if we are going to try to make some headway.

“One area of focus could be to explore the opportunities the workplace presents. We can already see that auto enrolment has done a great job of improving pension coverage, but many employers will offer benefits and perks beyond the legal requirements.

“Recognising that financial wellness is equally as important as physical fitness and mental health, some employers are beginning to implement holistic wellness strategies, whereby all areas of an employee’s health and wellbeing is considered and addressed.

“This is a step in the right direction in helping consumers to become more engaged with their finances. Furthermore, not only do employees perform at their best when provided with the right environment, culture, pay and benefits, they will be encouraged to remain loyal too. So, in short, it’s a positive for employers and employees alike.

“Whether or not the workplace is the answer to improving levels of financial literacy, and in turn potentially helping to bridge the advice gap, fundamentally, the better informed we can make people, the better equipped they will be to make better financial decisions for their future.”

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Notes to editors:

  1. Consumer research (quantitative) – This online survey was conducted on AKG’s behalf by Opinium. The research field dates were 22-25 August 2023.The research sample was 2000 UK adults, weighted to be nationally representative.
  2. 52% of consumer respondents agreed that systems, e.g., pension system, will become more complicated in the future and exceed their understanding of personal finance
  3. 23% of those who have not engaged with financial advice in the past five years or longer would not get professional advice even if it was free.
  4. 55% consumer respondents had never seen a financial adviser and a further 25% have not seen a financial adviser in the past five years.
  5. Future of Advice – State of Flux was written by AKG and sponsored by Canada Life and Charles Stanley.
  6. Of those who have never seen an adviser or have not seen one in the past five years i.e. 75% of the national representative survey.
  7. Enquiries:

Press enquiries should be directed to: Elle McAtamney, Canada Life, 07913 568213, elle.mcatamney@canadalife.co.uk