Financial Education: The demand increases | AAG Wealth Management

Financial Education: The demand increases

Posted: January 27, 2016

The demand for Financial Education in the workplace is on the increase. Richard Balaes, Managing Director at AAG Wealth Management, looks at what is causing this rise.

“The unprecedented changes to the pension landscape is definitely one of the main drivers. Companies are realising that they need to play a part in helping employees understand these changes” Richard states.

For those nearing retirement, there are a myriad of questions that arise because of the freedoms Osborne introduced last year. HR Managers are welcoming Financial Education as a way to engage with employees and help them make the right decisions about their retirement. “One to one educational consultations enable individuals to take advantage of the new changes, rather than being scared by the complexities. Breaking it down into understandable options, and highlighting which could work for them in conjunction with the rest of their personal finances.”

Employers have realised there is a substantial impact on the business when an employee discovers they are unable to retire on the income they would like.

This highlights the need at the other end of the spectrum, as Richard points out, “Financial Education also works for those yet to start a pension. The education piece draws attention to why it’s never too early to start a pension and explains the benefits and value of a company pension. It also explains how pensions are only aspect of a retirement plan.”

Employers are also increasingly aware of the link between money worries and stress and lower productivity and employee absence, as Richard explains. “There is a cost to a business when employees are having personal financial concerns. And, more and more, it’s senior executives and the C suite that are being affected because of the complexities of their finances. A Financial Education one to one consultation, enables them to discuss their concerns and get qualified advice on the matter.”

“We find this gives the individual that ‘phew’ moment, when they realise they don’t need to worry anymore.”

The right Financial Education programme leads to more engaged, financially savvy employees across the entire company. So, it’s clear to see why demand is increasing.