Fidelity is launching a new financial coaching service to give members the confidence to make better financial decisions through personalised one-to-one support with an expert.
Knowing how to manage personal finances has never been more important.
Individuals today have access to more information, tools, resources, online tutorials and TikToks than ever before, yet many still lack confidence when it comes to committing to financial decisions.
On one hand, pension engagement has never been stronger - our PlanViewer registrations are at an all-time high, the first step for people taking an interest in their long-term finances. But many people remain uncertain about whether they’re making the right decisions. There’s a confidence gap which is holding people back.
For employers, this presents both a challenge and an opportunity. Financial wellbeing has become an increasingly important part of the employee experience, with money worries often contributing to stress, distraction, loss of talent retention and uncertainty in the workplace. According to the Chartered Institute of Personnel and Development’s Good Work Index, 2023, money worries are the number 1 reason for employees to change job. Helping employees feel more in control of their finances can support personal wellbeing, career development and business outcomes, so everyone wins.
What are the confidence blockers?
So, we’ve established that engagement is healthy, but engagement alone is not enough. Employees are navigating a much more complex financial landscape than previous generations. People are living longer, economic conditions feel uncertain, and with so many different media vying for attention, there can also be issues of trust.
At the same time, responsibility for retirement outcomes increasingly sits with the individual. Employees are expected to make some pretty complex decisions. How much should they be contributing? Where should they be investing their hard-earned money? When can they afford to retire? How much is enough to keep them in a healthy retirement? It’s a minefield and people don’t feel fully equipped to commit to a game plan; a sentiment backed up by the Pensions Commission’s latest report on retirement adequacy. At Fidelity, we’ve acknowledged these complexities and have developed a strategy that helps employees through this confidence gap and supports them in making the right decisions for them.
Enhancing technology
Most employees now expect digital experiences that are intuitive, interactive and tailored to their individual circumstances. Many are already using digital and AI-powered tools to help them understand financial information and explore different options.
Recognising this shift, Fidelity developed Plan for Life, a new retirement planning experience designed to make retirement planning more personal, accessible and actionable. This new capability has been well received by members who can explore different scenarios, assess the impact of changing behaviours and see how financial decisions may affect their future income.
Why everybody needs a plan
Our longevity research shows that people who have a financial plan often feel more prepared for retirement not only financially, but also socially and emotionally. To help members bridge the confidence gap we talked about earlier, we are also launching a financial coaching service which helps individuals clear away the fog of uncertainty and forge a path ahead with confidence.
Members get access to one-to-one conversations with experienced financial coaches who can help them think about their goals, priorities and next steps. Rather than providing generic guidance, coaches focus on helping individuals understand how financial decisions relate to their own lives and ambitions.
You can hear from one of our coaches, Maherur Rahman, in his own words to get an idea of how he approaches the whole process.
Everyone’s financial situation is unique so each coaching session is tailored to the individual, whether they’re planning for retirement, preparing for a significant life event, reviewing investment choices or balancing competing financial goals. The result is a more personal and meaningful experience.
Blending technology and human expertise
What makes this coaching service stand out is the way it integrates with Plan for Life.
Instead of starting from scratch, coaches use a member's existing retirement plan as the foundation for the conversation. This creates an immediate understanding of the member's current position and allows discussions to focus on practical actions rather than general principles.
During coaching sessions, members can see the potential impact of financial decisions in real time. Coaches can help them explore trade-offs, assess different scenarios and understand how small behavioural changes today could influence future outcomes. And it’s not just theoretical - members will be able to see how the numbers stack up in their own individual cases.
Any agreed actions can then be captured within PlanViewer, helping to create accountability and a clear path forward. Follow-up sessions can reinforce positive behaviours and help members adapt their plans as their circumstances change.
A transformative benefit
For employees, financial coaching offers clarity and a sense of purpose. It transforms complex financial decisions into manageable steps and provides reassurance that members can count on.
For employers, the value goes much further than pensions alone, promoting employee wellbeing, aiding productivity and helping achieve employee retention. In addition, employees who feel more confident about their finances are often better placed to focus on their careers, engage with workplace benefits and plan positively for the future. You can see for yourself how one employer views financial coaching as an integral part of the employee experience, as I chat to Workday’s Principal Benefits Manager EMEA, Lisa Aslam.
Caption: Workday’s Lisa Aslam speaks with Eoin McCann on the importance of financial coaching
By offering access to financial coaching as part of a workplace pension proposition, employers can demonstrate a genuine commitment to supporting employees throughout their financial journeys and reap the rewards of a happy and confident workforce.