Should employers play a role in offering financial advice to cash-strapped employees? CIPD research finds 73% of employees say their organisation offers them no form of financial advice, but Jackie Holmes, senior consultant at Towers Watson, believes they are missing a trick.
“The way the economy is, everyone needs to make their money work as hard as they can,” she says. “From an employer point of view, there are benefits in terms of making sure people value the benefits they receive. Sometimes employees don’t appreciate the more costly benefits.”
As defined benefit (DB) pensions schemes close, replaced by defined contribution schemes (DC), education is even more important. “Employees need to make the right decision about retirement and don’t necessarily have access to advice outside of work, so employers morally have to fill that space,” argues Holmes.