"The most effective financial wellbeing programmes are those that reflect the realities of modern working life."
- Jonathan Watts-Lay - WEALTH at work
New research from the Reward & Employee Benefits Association (REBA) has found that more employers are taking an alternative approach to financial wellbeing as they look to address the challenges facing today's workforce.
The research, conducted in partnership with WEALTH at work, revealed that retirement adequacy remains the most common financial wellbeing priority, with 87% of employers either already addressing it or planning to do so.
However, organisations are increasingly broadening their focus to tackle a wider range of financial resilience challenges affecting employees throughout their working lives.
23% of employers say they currently provide support to address cost pressures on working carers, including parents. This is set to nearly treble to 60% over the next two years, representing an overall increase of 161%.
REBA says this reflects growing recognition of the financial pressures faced by those employees who are balancing work with caring responsibilities, whether for children, ageing relatives or others who depend on them.
Meanwhile, initiatives aimed at addressing gender gaps, such as pension savings disparities, are expected to increase by 121% over the next two years, rising to 75% from the 34% of employers currently providing support.
Cost-of-living pressures also remain a major concern, with 70% of employers already addressing, or planning to address, challenges associated with rising expenses such as energy, fuel and food.
The research also points to growing concern around housing affordability, with support expected to double from 20% now to 41% in the future, with Mintel’s research revealing that 61% of adults believe economic conditions have a greater influence on their financial wellbeing than their own actions.
Overall, REBA’s research found that 74% of organisations now incorporate financial inclusion within their approach to financial wellbeing, including 26% embedding it across all areas of their strategy.
Employers are also increasingly tailoring support to specific workforce groups. The most common areas of focus are multigenerational workforces at 75%.
This is followed by women and working parents or carers at 70% and employees experiencing periods of ill health at 66%. In addition, 63% of employers offer or plan to offer tailored financial education for specific workforce groups.
READ MORE: 77% of employers use case-by-case basis to fund employee support directly
"Financial wellbeing has grown to become much broader than just helping employees prepare for retirement," Jonathan Watts-Lay, director, WEALTH at work, said.
"People face a variety of financial challenges throughout their lives, whether that's managing childcare costs, supporting ageing relatives, dealing with housing affordability issues or navigating periods of financial vulnerability.
"Our findings indicate that employers are increasingly recognising that employees can experience a diverse range of financial challenges throughout their working life. A single financial wellbeing message delivered across an entire workforce is unlikely to address the specific needs of employees at different life stages and in different circumstances.
"As a result, workforces are tailoring financial education support to address a wide range of issues - whether that is helping employees manage childcare costs, cope with cost-of-living pressures, save for a first home or prepare for retirement.
"As well as being important from an inclusion perspective, this can also help improve employee engagement, retention and financial outcomes.
"The most effective financial wellbeing programmes are those that reflect the realities of modern working life and ensure employees have access to support that is relevant to their personal circumstances and financial goals."
