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The financial adviser stated consumers are “facing a huge retirement time-bomb”, because they underrate the amount of savings required for retirement.
This as well as the study by the Health & Safety Executive has discovered that stress – and mainly money concerns – were the main cause for 43% of all lost working days in the UK, moved the firm to launch the service.
Chase de Vere intends to offer a service providing the basics of financial competence, such as debt management; savings and investments; day-to-day budgeting; protecting one’s family; and saving for retirement.
The firm is planning to go beyond focusing on staff benefits, instead using its 200 qualified IFAs to provide the service to for everybody from smaller-scale workers to larger FTSE 100 companies.
Sean McSweeney, the Chase de Vere corporate advice manager, stated: “We do not want to go straight in talking about, for instance, an employee’s workplace pension. There are so many people with such low financial literacy that often when that has happened at their company their knowledge probably hasn’t improved due to not knowing the basics.
“Crucially what we have seen is a lack of schemes going from very basic principles through to understanding a workplace pension and then giving contracted advice at the end of the service.” McSweeney said the reason for the increasing demand for this kind of service was pension freedoms.
Before proceeding to individual guidance sessions, paid for by the employer, the Chase de Vere service will first start with a group presentation. The service would be customised to the needs of both employers and employees, according to company budgets.
McSweeney said: “A strong and successful business needs to recruit, develop and retain the best employees, with a focus on well-being as well as reward. Research we conducted earlier this year showed 88% of employers saw a greater needed for financial education in the workplace and we are looking to help provide this.”
The Health & Safety Executive study on money and stress has discovered that 30% of respondents think money issues had put them under pressure at some point in the previous year.
25% stated to have been suffering from anxiety due to money worries, 13% said money issues had a negative impact on their ability to concentrate at work and 6% had skipped work because of money worries. The study reported that 9.9m working days had been lost in the 2014/15 tax year because of stress.