Brits increase their focus on savings amid Covid-19 impact

Over half (51 per cent) of UK adults have become conscious of the need to save more amid the pandemic, with 14 per cent stating that it has made them think they need to save more into their pension, research from Wealth at Work has found.

The survey revealed that over a quarter (26 per cent) of adults have realised that they do not have enough savings as a result of the pandemic, and a further 22 per cent have realised they need to improve their understanding of how best to save money.

In contrast, however, nearly one fifth (18 per cent) stated that it has not changed their view on saving.

Additionally, despite saver concerns, nearly half (41 per cent) of respondents were not offered any support by their employer to help understand their finances.

For those who were supported by their employers, nearly a quarter (23 per cent) stated that they put on financial education seminars or webinars, a fifth (20 per cent) provided financial guidance on a one-to-one basis, and 18 per cent said that their employer organises for staff to speak to a regulated financial adviser.

Wealth at Work director, Jonathan Watts-Lay, highlighted the research as demonstration that people do want to learn how to save more money, and some realise that they need to save more into their pension.

He stated: “The pandemic forced many people to stop and think about their finances, and the majority realised that they needed to save more.

"Unfortunately, reduced work or redundancy has meant that many have faced a fall in their overall household income. Without having sufficient savings to fall back on, many may have struggled to make ends meet.

"Financial education and guidance delivered in the workplace can help employees understand how to make the most of the various saving vehicles available depending on their individual saving needs; whether that be to purchase a car, house, for retirement or even to cover unexpected eventualities such as being made redundant.

“It can help employees realise how they could free up more money for their savings by shopping around for car insurance suppliers rather than auto-renewing, or by utilising discount vouchers.

“Financial education can also help with other important financial skills such as how to best manage debt, understanding the importance of having an emergency fund set aside for unplanned life events, as well as having sufficient savings for retirement.

“These uncertain times have highlighted the need to support employees to become more financially resilient so that they are better able to manage any financial shocks. As part of an overall wellbeing strategy, many companies are seeing the benefit of sourcing specialist financial wellbeing providers to help with this.”

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