August 08 2022 | Simon Miller
August highlight reel: Pensions Awareness Week
Every month I take the team at nudge through a concept related to financial planning and wellbeing and this month it was pensions.
3 min read
Whilst money might not buy you happiness, poor financial health can definitely bring about the opposite. If you’re not supporting your employees' financial wellness, you’re missing a key piece of the wellbeing puzzle.
It's no secret that when people have control over their money, they’re more likely to achieve life goals, feel more secure, and experience holistic wellbeing. Money management is often neglected from an individual's self-care routine and sadly, research shows that anxiety around personal finances is up 50% in less than a year, with 70% of people globally concerned about their financial situation.
The research also revealed that negative feelings about money aren’t limited to one group; people around the world on all income levels are concerned that life goals such as buying a home or retiring will have to be put on hold due to the cost of living crisis. All of this amounts to many people feeling stressed, unhappy and unhealthy - feelings that self-care often aims to combat.
Empower your employees
But it’s not all bad news! With employee benefits that serve the whole individual - including robust, impartial financial education - businesses can provide support to their people that will get them on the path to prosperity. In addition to traditional benefits such as healthcare and retirement planning, financial education can provide the knowledge and skills required to make life goals (such as buying a home or planning a wedding) become attainable, improving feelings of happiness and contentment.
Why is financial wellbeing important?
To be truly happy, individuals must experience holistic wellbeing, or “a state of complete physical, mental, and social” health, according to the World Health Organization. Feeling a lack of financial control and that goals are unreachable can cause significant mental strain. By providing the resources and tools that allow your employees to incorporate money management into their self-care routine, you can improve their financial wellbeing over time.
At nudge we define financial wellbeing as when an individual is in control of their money and feels financially secure. In turn, they're happier, less anxious and can be more empowered with their financial decisions.
The business impact of improved financial wellbeing
Whilst it’s clear that providing financial education can improve employee wellbeing and happiness, there’s also a big business impact to consider. Employee engagement, retention, and productivity increase with an impartial financial education solution in place - in fact, 85% of financially well off employees feel more productive at work, and employees who receive financial education are 23% more likely to stay with their employers.
With a financial education platform accessible on mobile, from anyworld in the world, your employees can seamlessly use the tools and resources they need to check in on their financial health. This in turn can improve retention and productivity; it’s time to add money management to your self-care routine.