Workplace saving could help employees ease the cost of living crisis

With 49% of people in the latest HL Opinium Survey* revealing they’ve spent some of their savings over the past year to pay for unexpected expenses, the cost of living is continuing to bite, putting household finances under strain.

This is where employers could help.

For those in a position to save, a workplace savings scheme could help build financial resilience, providing the necessary tools to prepare for both the unexpected and the long term.

By offering workplace savings alongside a workplace pension, employees can make regular savings directly from their wages.

We’ve launched HL FlexInvest, a payroll saving and investment offering to help support employees to become more financially resilient.

Employees can redirect pension and other entitlements, including employer matched contributions, into savings and investing accounts which can be used as an alternative option where money can be accessed more readily than a pension. But it’s worth keeping in mind that investments should always be made for the long term, and we suggest at least a five year period.

FlexInvest offers something for all employees – those with restricted pension allowances, those saving for a house deposit, and families saving for children.

Research from The Building Societies Association shows half of employees who aren’t currently offered workplace savings would be interested in joining.

And the benefits are more than just financial. More than one in four of those surveyed said money worries had affected their ability to do their job. Of those whose money worries had impacted their work, nearly two thirds said they’d be interested in a workplace savings scheme if this was offered to them.

Being able to access and build savings through the workplace could have a powerful impact on mental health and productivity, as well as financial resilience. Having some kind of financial buffer in place could be vital in helping people navigate these difficult times.

*Opinium Survey completed for HL, May 2023, 2,000 respondents