Why Financial Planning Matters: The Role of Employers in Empowering a Resilient Workforce

Financial Planning Week is a nationwide campaign helping people to take control of their finances, understand the value of financial planning, and create lasting financial security for themselves. For employers, it’s a great reminder of the huge role they can play in supporting employees’ financial wellbeing - and why investing in financial education benefits both individuals and organisations as a whole.

According to a 2024 study, 82% of UK employees believe that understanding money management will help them achieve their life goals. Yet, many still feel unprepared when faced with financial decisions. Navigating mortgages, pensions, and everyday expenses can feel overwhelming. Without the right knowledge or tools to help them take control of their finances, employees can suffer with stress, anxiety and potentially make poor financial decisions. This is where employers can step in to make a lasting impact.

Why Financial Planning Matters for Employees

Effective financial planning helps employees to build confidence and clarity about their future. By learning essential skills such as budgeting, goal setting, and retirement planning, they gain greater control over their money. This reduces stress and can really improve the mental health of employees. The benefits of financial literacy span far, empowering employees to create stability, avoid debt, and grow wealth.

Key areas where financial education makes a difference:

• Budgeting: Understanding how to manage spending helps employees make better day-to-day choices and avoid unnecessary debt.
• Retirement planning: Knowledge about pension schemes, savings strategies, and future goals enables workers to maximise their long-term financial security.
• Debt management: Tackling high-interest debt with confidence leads to better financial health and reduced anxiety.

How Employers Can Make a Difference

Employers can drive real change by offering access to financial planning tools, resources, and guidance. Here’s how:

1. Webinars and Workshops Interactive sessions led by financial experts can cover everything from saving strategies to future planning. These events foster engagement, encourage questions, and make learning interactive.
2. On-Demand Tools Blogs, videos, calculators, and digital learning tools allow employees to explore topics at their own pace. Some examples include a retirement forecast tool or budgeting app.
3. Personalised Financial Coaching 1-to-1 coaching helps employees tackle their unique financial challenges and set goals with expert guidance.

Creating a Culture of Financial Openness

Stigma around money can prevent employees from seeking help. Employers can break down these barriers by fostering a supportive culture:

• Lead by example: Managers and leaders sharing experiences with financial planning can normalise these conversations.
• Signpost resources: Consistent communication about available tools and benefits ensures employees know where to turn for help.

Investing in financial wellbeing is an investment in productivity, engagement, and retention. This Financial Planning Week, make a commitment to empower your workforce with the knowledge and tools they need to thrive financially.

Empower your people today