Be invested in financial wellness

Financial wellness has grown in importance over the last decade and it’s now a key aspect of the employer value proposition, with 73% of employers¹ saying they feel extremely or very responsible for supporting employees’ financial wellness. But what does this mean in practice? And can a one-size-fits-all approach be appropriate across your workforce?

The value of providing support

Our Global Employer Survey showed that employers report lower staff turnover when they provide a range of financial support. Additionally, people within those organisations are significantly more likely to be satisfied working there (84%, vs 59% where there is minimal financial support), with job satisfaction being closely aligned with employee productivity. This highlights the value to an employer of refining benefits strategies to suit the needs of their employees.

We identify four pillars to financial wellness; budgeting, debt, savings and protection.

To assess financial wellness requires an objective reality along with the subjective view of how you feel about your situation. In a recent webinar, one attendee described financial wellness as “Being able to have a meal out a few times and still have savings at the end of the month”, which captures the need to enjoy living in the present but also having plans for a brighter future.

Budgeting is the first step towards day-to-day financial stability, then managing debt to minimise the burden of repayments on living costs. But as well as managing living costs, planning ahead with investment and savings are needed in order to meet short, medium and long-term financial goals.

We have analysed the results from 25,000 people using our financial wellness tool in 2024. People scored consistently highly on their ability to pay their bills and stay out of debt, but people scored lowest on their ability to plan finances in the future, especially when it came to savings outside of their pension. These investments and savings plans can be key to support the major life moments such as buying your first home, starting a family or a new business and can help to generate financial wellness. At Fidelity, we want to help people be invested in their future and achieve their life goals. There are significant benefits to employers too, as recent analysis of Fidelity clients with wider workplace savings showed that employees who had taken out an Invest@Work account were up to 65% less likely to leave in 2024.

However it is often a challenge to take that first step, and the Financial Conduct Authority recognises that “Many people struggle to make important financial decisions…some keep too much of their savings in cash, losing out on potential returns.”²

1. Tools and guidance to become better investors 

A Platforum study in January 2025 showed that 35% of UK adults are investors, and learning how to invest is the most common desire for both investors and non-investors. Interestingly this was most prevalent for 18-35 year olds who are dipping their toe into this world for the first time.

People tend to act with caution when they are not familiar, a lack of knowledge seems to be the major barrier. This leads to nervousness around risk and the fear of loss, as well as feeling pressure to make the ‘right’ investment choice, which can then result in inaction.

For example, a focus group that we ran highlighted that the range of 5,500 funds available on Fidelity’s Personal Investing platform caused feelings of being overwhelmed rather than reassurance. This can be addressed by providing bite-sized education and helpful guidance at the right time.

Our webinar programme provides a range of financial information and education for you and your employees, with recordings of previous events including ‘Is investing right for you?’. In October's webinar, our investment director Tom Stevenson talks through some of the biggest investing mistakes he's made across his career.

2. Simple and clear communication

Financial services has a lot of jargon, and regulatory and technical aspects can discourage engagement and lead to switching off. We use readability testing to improve accessible language and scenario planning and visualisation to highlight key points. We also partner with Fairer Finance and Plain Numbers, to improve accessibility which can help to increase engagement.

3. Providing access in the workplace

Family and friends can support with financial decisions, but people are looking to their employers to learn more about the broader world of investing. Our member focus group sessions, hosted by Boring Money, highlighted preferences for more support and education.

Employers can be the gatekeeper for access to educational resources and partnering with financial services providers. We share our financial experience and expertise to work closely with many employers, who help to raise awareness of the support available. We work together to ensure that the communications are relevant and valuable for your employees. Our experience suggests that people who do get started and participate in payroll savings schemes report higher levels of financial satisfaction and lower financial anxiety compared to non-participants.

At Fidelity, we're committed to improving the financial confidence and investment knowledge of our members. Our range of interactive tools, website articles, presentations, webinars, our Workplace Workout communications programme and our PlanViewer app all help to provide a package of ways that can support financial wellbeing of your employees. Ask your Fidelity contact to understand how we can support you.

Sources:
¹Fidelity’s 2024 Global Employer Survey
²Financial Conduct Authority - Advice Guidance Boundary Review Nov 2024