Giving your employees access to financial balance

Recent Fidelity research highlights the need for solutions which help employees plan and prioritise for multiple financial goals at the same time. Many employers are increasingly recognising the important role they play in empowering their workforce . Five in six senior leaders we asked indicated that they feel extremely/very responsible for their employees financial wellness compared to just two in six in 2022¹.

To provide an understanding of how financial priorities shift in different life stages, we asked 3,000 Fidelity workplace pension scheme members in the UK about their financial goals and challenges².

This research found that many wait before they prioritise retirement saving, underscoring the need for effective solutions to help employees manage their financial priorities, particularly as they relate to retirement planning.

The shifting financial priorities of employees: from property to pension

The research reveals a distinct pattern in financial priorities.

• For younger members, aged 18-34, the focus is firmly on property and immediate goals - 35% prioritise saving for property and 29% for everyday expenses, while just 15% are focused on retirement planning.
• As members move into their mid-career years (35-44), everyday expenses become even more prominent (40%). As many have achieved their property goals, the balance shifts away from saving for a home (18%) towards retirement planning (28%).
• It’s only in later working life (45-54) that retirement planning begins to take priority (39%), narrowly overtaking everyday expenses (37%), with saving towards a property dropping to just 9%.

At the beginning of their working life employees can feel as though there is an endless list of financial goals - including repaying student loans and saving for a first home. These nearer-term goals naturally take precedence over longer-term planning, such as saving for retirement.

However, only prioritising retirement savings in 40s or 50s can result in a significant gap between retirement savings and what is needed for a comfortable retirement. Employees need access to tools and guidance to help them balance both short-term financial needs and long-term goals. With the right support, these goals don’t have to compete - they can coexist.

Recognising the need for retirement savings guidance

The research also explores feelings towards long-term savings and retirement plans. Two-fifths (40%) say they want support in understanding how much they should be contributing to their pension to help fund a comfortable standard of living through retirement - rising to half (50%) of those aged over 55.

The importance of addressing this is clear, as the research shows that one in five (20%) respondents aged over 55 expect to work for longer than they had anticipated. Among them, the majority (62%) said this is to fill a shortfall between what they have saved and what they will need, or because their financial circumstances have changed. This can impact the retirement planning and expectations for employees and the retention and succession planning of talent management for businesses.

Employees need access to the right support, tools and guidance that help them feel in control of their finances throughout their working lives and make informed decisions for their personal goals.

While many juggle several different financial goals at any one time, it’s important to help your employees to balance and prioritise the impact, timing and tax efficiency of saving decisions throughout their lives, including saving for retirement.

Supporting your employees with tools and guidance

Financial wellness is about understanding an individual’s overall financial situation. This begins when someone first starts saving and extends well beyond their working life - with changing priorities along the way.

Employers are often the gateway for employees to access educational resources. You can play a crucial role in building knowledge and confidence by partnering with financial services providers to implement financial wellness programmes.

Raising awareness of these programmes enables your employees to benefit from the support available - understanding how to maximise their workplace benefits and maximise their pension contributions. You can also get valuable insight into where your workforce needs support.

Partnering with you to support financial wellness 

Additional Fidelity research on confidence and financial wellness shows the power of benefits strategies to support your employees, from assessing financial wellness needs, building confidence, targeted benefits and social support, we’ve identified a number of starting points to build employees’ financial confidence3.

At Fidelity, we offer support at every stage of your employees’ financial journey - from the information and guidance we offer, supporting individuals through life events, to the online tools and resources we’ve developed to help people plan with confidence.

We continue to invest in resources to help people make smarter decisions - improving support from calculators to coaching to boost financial confidence.

Find out more

As we continue to support financial balance, we emphasise the significance of making informed financial decisions that take into account impact, timing, and tax efficiency. By doing so, employees can be on their way to confidently manage their financial priorities and enjoy a secure retirement.

Reach out to your Relationship Director or usual Fidelity contact to find out how we can support you in boosting the financial wellness of your employees with targeted strategies, communications and tools for your workforce.