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Employers say staff should be responsible for financial education

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However, the majority still plan to help employees with financial advice and planning

Employers increasingly believe that employees should be responsible for their own financial education, according to research from financial adviser Chase de Vere.

Its survey of 10,000 employers and 300 HR decision makers found that 29% of employers thought the worker themselves should be responsible, an increase from just 4% in 2016. While 35% said they thought the government should be responsible, this represents a drop from 65% last year.

However, despite greater emphasis on employee-led education one in five (20%) respondents thought employers should take charge here. Encouragingly, 58% said they plan to help employees make more informed choices about retirement, and 42% reported company appetite to pay for financial advice.

Sean McSweeney, corporate advice manager at Chase de Vere, said it's positive that most employers are planning to assist their employees with financial advice.

“It is interesting to see the increasing number of employers who recognise that the government isn’t going to take responsibility for providing financial education and that they and their employees have to take this responsibility themselves,” he said. “The overwhelming majority of employers are aware that their employees would benefit from financial advice. This is a very good starting point and it is positive that 58% of employers are planning to do more to help their employees make informed decisions.

McSweeney warned that employers should act now or face the consequences. “Employers are ideally placed to help their employees plan for the future,” he said. “Those who don’t may, over time, be faced with an ageing workforce that cannot afford to retire and as a result suffer from lower productivity, succession planning issues, and losing younger talent to competitors that provide more opportunity for advancement.”