Financial knowledge dearth among UK employees - Mitrefinch

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Financial knowledge dearth among UK employees

Published: May 5, 2016

There are major gaps in the financial knowledge of UK workers, according to new findings.

Research published by Barnett Waddingham showed that more than 70 per cent of millennials and generation X employees feel that they don’t understand pension investments.

In addition, the study showed that the vast majority (94 per cent) of baby boomers who earn between £20,000 and £39,999 are not aware of the retirement choices available to them.

It was also found that nearly half (49 per cent) of all employees would prefer face to face financial advice.

Speaking about the findings, Julia Turney, Head of Platform and Engagement at Barnett Waddingham, said: “Our research shows that early financial education is critical–the earlier someone starts to save, the easier it should be.  However, age and affluence play a significant role when it comes to saving for the future.

“Those who earn more might be able to afford to seek financial advice, but what about those who cannot afford it? Will this group be left to find out things for themselves and make mistakes along the way? Or, will employers step in to provide more financial education, recognising the significance of personal financial health in overall employee wellbeing? We believe this is the way it should be.”

The lack of focus on saving for a pension could be due to the fact that nearly three quarters (71 per cent) of those aged 18-29 feel they do not understand their pension investment. A lack of understanding peaks among those earning less than £20,000 a year, with 96 per cent feeling this way.

Mitrefinch offers payroll software that can help businesses track and monitor all of their payments including pension contributions.

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