What is financial wellbeing?
Financial wellbeing is how people feel about the control they have over their financial future - and their relationship with money. It's about focusing on the things that make their life enjoyable and meaningful both now and in retirement.
Money versus mindset
What we focus our mind on matters. Our short video introduces our Financial Wellbeing Index - an exciting initiative showcasing extensive research by our Centre for Behavioural Research into the nation's financial wellbeing.
We've created a summary of our insight to support you in this changing landscape.
In a changing world, we need greater financial resilience
The world is rapidly changing around us, and individuals are being asked to take on more personal responsibility for funding their retirement.
Here are the UK insights from our global report.Read the report (PDF, 1.7mb) Read the report (PDF, 1.7mb)
The recommendations from our Retirement Readiness Report can help support your employees to engage with their finances.
By communicating and encouraging them to get involved in these five fundamentals for retirement readiness, you'll already be playing a part in promoting better workplace wellbeing.
Being a habitual saver is one of the best ways to save towards retirement. If you’re not familiar with the term, it simply means someone that is a regular saver, and saves ‘habitually’.
Saving and budgeting takes a little bit of dedication and time to get right, but the development of good savings habits can become second nature over time and may help make a real difference for your employees' financial future.
One of the most useful ways to help your employees plan and prepare for their financial future is to direct them to use digital tools such as our Retirement Planner. Your employees can get a forecast of their likely pension income to help plan and weigh up options for retirement.
Aegon members have access to an online pension account service. You could encourage members to activate their accounts, if they haven’t already done so, and sign in to explore what they could achieve by making small changes. They might also have access to a modelling tool in their online account – letting them pull financial levers and undertake ‘what if’ analysis before committing to an action.
Without having a written plan, its hard for people to be clear on their priorities and have a sense of whether they are on track to meet their objectives.
Here’s how you could help:
- Encourage your employees to take our financial wellbeing quiz.
- Share suggestions and guidance from our partner at the Initiative for Financial Wellbeing for next steps they can take.
- Help them control spending with a free budget planner from the Money Advice Service.
- Let them know that financial advisers can help with a plan.
Even the best-laid plans can be derailed by unforeseen events. Having protection in place can help improve financial wellbeing as your employees could feel more reassured that they’re prepared if anything does happen.
Help your employees uncover their protection needs by encouraging them to complete our Personal Protection liability audit .
Leading a healthy lifestyle is perhaps the best back up plan – and can help people prepare for a more comfortable and active retirement.
Eating a varied and healthy diet, incorporating more movement into each day, getting a good nights sleep and minimising stress can all play their part.
We know it can be hard to make (and stick to) the right decisions when it comes to health. If your employees want to make a change but don’t know where to begin, Nuffield Health have created some articles to do just that.
Being able to act upon the fundamentals of retirement readiness requires equipping people of all ages with new life skills.
If your employees’ finances aren’t in the best shape now, that doesn’t mean they have to stay that way.
Help them improve their current financial situation by encouraging them to make some changes to their spending and saving behaviour. Share our five habits to help build a prosperous future.
And soon enough, these good habits could become hard to break.
Do your employees all understand their credit score?
A credit score, also known as a credit rating, is a number that reflects the likelihood of someone paying credit back.
Lenders, like banks and credit card companies, look at peoples credit history and credit score when they receive an application, which will help them identify the level of risk in lending to the applicant. The higher the credit score you have – the better the chances of being accepted for credit, at more competitive and often lower interest rates.
Let employees know about Aegon Assist
Our Aegon Assist team can help guide your employees through their retirement options. While they can’t give advice, they can provide your employees with information to help them make informed decisions.
The service is free, and employees can call Aegon Assist on 03456 03 05 09.
Phone lines are open 10am-4pm, Monday-Friday. Call charges will vary. Calls may be recorded or monitored.
How to recommend financial advice
Financial advice and guidance is highly recommended to help decide the best course of action for your employees and their circumstances. Employees may have to pay for financial advice. If they don’t already have a financial adviser they can find one through The Money Advice Service. This government-sponsored financial guidance organisation can also help with debt advice, money and pensions.
Let your employees know if they have access to a scheme adviser for their pension plan.
Employees over 50 who want to make sense of the different ways they can take money from their pension pot, are entitled to free, impartial guidance from Pension Wise.
Communicate your current benefits regularly – and keep them on review
You might already have benefits on offer including services and information to help employees tackle financial wellbeing, such as employee assistance programmes.
It’s good practice to continually promote the benefits of these to your employees. Our financial wellbeing guide includes suggestions around the routes you can use to reach out and help support employees.
If you communicate benefits, include a call to action for employees plus phone and/or email contact details.
Internal sessions and seminars
Our Workplace Communications Team can help you run webinars, covering a range of topics including wellbeing in the workplace and the Aegon pension scheme. These sessions provide a useful overview of what’s on offer and give employees an opportunity to ask questions to make sure they’re making the most of the range of benefits on offer with their pension.
For news and insights, visit our employer hub.