A nation of savers, built on companies of savers.
That was the challenge laid down by Michael Royce, of the Money and Pensions Service, to Financial Wellbeing Forum '23 attendees. His statement underscored the importance of proactive measures when it comes to employee financial wellbeing, particularly, savings.
We heard how creating the conditions for savings habits should be foundational to an employer's financial wellbeing strategy, forming a crucial pillar of support for their employees' futures. And we heard world-leading experts share their insights on how flipping a default - from opt-in, to opt-out - is one example of how behavioural science can transform the financial security of a workforce, often with remarkable business results.
The takeaways:
• Saving is not easy for everyone. It is not a one-size-fits-all subject
• People often have greater capacity to save than they realise - but telling them, or 'education' is not enough; practical implementation is key.
• Employers can go further: from well-timed nudges, to offering better propositions than high street banks, to building savings around their pay
• More than a third are saving for the first time, through this approach, implemented by their employers.
• Switching the default to automatic enrolment in workplace savings drove uptake from 16% to 71% for Co-op and Bupa, demonstrating the significant impact of this simple change.