Why financial wellbeing should be part of your employee benefits strategy

Employee benefits should be one of the most effective ways for your business to support, engage and retain staff; however, benefits only deliver real value when employees understand them and feel confident making financial decisions.

Recent research from The Richmond Project has highlighted the scale of the issue. The study found that almost 40% of British adults have poor financial literacy [1], with many struggling to understand core concepts such as compound interest, inflation and risk diversification.

When employees lack financial confidence, it can have an impact on both their personal wellbeing and their performance at work.

Financial stress can affect your workforce

Money worries rarely stay at home. Employees who are concerned about rising costs, debt, savings or retirement planning may find it harder to focus, make decisions and feel confident about the future.

For employers, this can contribute to lower engagement, reduced productivity, absenteeism, and increased pressure on managers and HR teams.

Financial wellbeing support can help employees feel more informed and in control. It gives them access to practical guidance and education, helping them understand the financial decisions they face at different stages of their working lives.

Financial wellbeing supports better benefit engagement

A well-designed employee benefits package can still fall short if communication is poor or employees don’t understand what is available to them.

Financial wellbeing support can help bridge this gap by explaining benefits in plain language and showing employees how they fit into wider financial planning.

This might include guidance around:

• Budgeting and managing debt
• Saving and investing
• Retirement planning
• Understanding workplace pensions
• Making better use of employee benefits

The aim isn’t to turn employees into financial experts, but to provide enough knowledge and confidence for them to make better decisions.

It demonstrates a commitment to your employees

More employers are recognising that financial wellbeing forms part of wider employee wellbeing.

Just as businesses may support physical and mental wellbeing, financial wellbeing can help employees feel more secure, valued and supported.

This can be particularly important during periods of change, such as cost-of-living pressures, benefit reviews, pension changes or employees approaching retirement. Clear communication and accessible education can help reduce uncertainty and improve confidence.

A good example is being able to signpost staff to further information or support. If an employee’s circumstances have changed at home, signposting them to entitledto will allow them to identify any further financial support available to them and their family.

How can we help you?

Our Financial Wellbeing services are designed to educate and empower employees by giving them the tools they need to make better financial choices at all stages of their working lives.

Our services include:

• Presentations
• Workshops
• 1-1 meetings
• Telephone and video support

The most popular areas we cover include retirement planning, understanding workplace pensions, budgeting, loans and debt management, and guidance on saving and investing.

Our financial wellbeing and education services can be included within workplace pension and employee benefit projects or provided on an ad-hoc basis where your business needs support with a particular topic.

Important information

The information provided is for general guidance only and reflects our understanding of HMRC rules at the time of writing. It does not constitute legal, tax, or accounting advice. Employers should seek specific advice from their accountant or tax adviser to ensure the approach taken is appropriate for their circumstances.

Sources

[1] The Richmond Project, Spotlight on Financial Literacy 2026, published May 2026. The report forms part of The Richmond Project’s wider Number Nation research into numeracy and financial literacy in the UK. https://richmondproject.org/wp-content/uploads/2026/06/TRP_Financial-Literacy_May-2026_V.2.pdf