Personalising the Benefits Experience and A

Transcription

1 Personalising the Benefits Experience and A Return to New Paternalism Jim Cowan Head of Benefits 2 nd October 2018 Information classification: Internal

2 What we will cover today The changing workforce What this means The freedom of choice and a return to new paternalism Financial wellbeing Education and ditching the jargon Money and Me Information classification: Internal 2

3 The Changing Workforce Multiple generation in work Greater demand for improved work/life balance Demise of the DB pension More over 70 s in the workforce Flexible working arrangements and changing environments Multiple career changes over a working life People with multiple employments at the same time Young workers expect instant information and feedback But in reality everyone is an individual, and at it s simplest level, people tend to have different priorities at different life stages Information classification: Internal 3

4 What this means A one size fits all approach to benefits doesn t really work any more The benefits industry faces a challenge..how does the provision of risk benefits evolve to recognise multiple employers at the same time and more frequent career/employer changes Benefits definition needs to extend more than ever to include the working environment, flexibility, training, re-training and support for career change Personalising communication and education are key Information classification: Internal 4

5 Information classification: Internal 5

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7 Information classification: Internal 7

8 Retirement Savings The 12 year experiment and a return to new paternalism 0% Default 2% Default and AE 4% Default 10% Default 5% AE 8% Minimum Information classification: Internal 8

9 What is financial wellbeing? Information classification: Internal 9

10 Free Money Information classification: Internal 10

11 Saving for life after work Information classification: Internal

12 Free money for life after work Information classification: Internal

13 Case studies : Less pizza, more pounds - for life after work Information classification: Internal

14 A need to support financial capability, especially for Young Workers 1 Beyond family and friends, young adults are unsure where to turn to for help with their money and are overwhelmed by the quantity of information available Young adults are struggling with a lack of confidence and understanding of financial products and how to manage their money Young adults are the least confident age group when it comes to financial matters (45% say they are confident compared to 58% of all adults) 1 While over two thirds of young adults (69%) say they have financial goals, most don t have a plan to reach them 1 Young adults are most likely to be living with a debt problem. one in four live with troubling debt and of these only one in ten are seeking advice 1 2 One in four workers report that money worries have affected their ability to do their job 2 3 This is impacting their performance and general happiness Improving financial capability has positive long term impacts for both work/study and home life One in ten say they have found it hard to concentrate/make decisions at work because of money worries 2 19% have lost sleep worrying about money 2 Young adults who receive advice from another person or organisation (excluding family and friends) experience improvements in their income, reduction in debt and feel better able to manage their money 3 Improvements in financial capability have a more positive impact on people s psychological wellbeing than increases in household income or material well being 4 Increased financial capability increases people s resilience to challenging life events such as divorce and unemployment 4 1. Money Advice Service 2. CIPD Financial Wellbeing the Employee Review 3. Baring Foundation Outcomes of youth advice Citizens Advice Bureau. 14

15 Money & Me - Supporting customers and internal Financial Wellbeing Money & Me is an externally developed training session currently in a test and learn phase internally with a view to offering as part of our employee wellbeing programme Used externally to help various community groups, applicable for all segments of society, also being tested with community groups, personal customers, employees of corporate customers Recognises that people make big decisions based on emotion rather than logic Overview : It is an experiential 4 hour workshop covering the themes of: Earning Buying & Selling Planning Risk Taking Sharing Donating Encourages participants to examine their own understanding of their attitude to money and identify behaviours where they would like to make changes Not a technical money management course, there is no technical content 15

16 Q&A Information classification: Internal 16

17 Thank you Information classification: Internal