In the weeks following the Brexit result of the EU referendum, the nation has experienced a multitude of political and financial changes as Britain faces a period of heightened uncertainty. Financial markets may well have steadied following the initial sharp fall, and the rate cut by the Bank of England is encouraging for borrowers, however, financial security for the future has now become a prime concern for the people of Britain.
In an attempt to prevent a recession, The Bank of England announced an interest rate cut along with the further measures it will take to boost the economy following the vote to leave the European Union. Mark Carney, the Governor of the Bank of England insisted that ‘the UK can handle change’, whilst he professed, ‘Some of the adjustments to this new reality may prove difficult and many will take time.’ It is this period of change and financial uncertainty that is causing concern amongst the nation, for whom future financial stability has never been more sought after. It is on everyone’s mind – even those who previously had not paid attention to their pension, as the British workforce look to get more informed to ensure they are saving sufficiently for a comfortable retirement.
The extent of the concern is highlighted in the recent Wealth Wizards research findings. With Britain divided on the decision to leave the EU, the research revealed that one in three (31%) working Brits are now more concerned about their pension and retirement. Forty per cent admitted that they did not consider the implications to their pension when voting and half of those who voted to remain in the EU voiced concerns about their pension.
But if the workforce is so worried about their financial future, how well informed are they to make the right decisions? The findings suggest they are not as informed as they would have liked to be, with thirty eight per cent stating they have no idea how well diversified their pensions are. When it comes to the provision of support and guidance, thirty one per cent of Brits feel that it is their employer’s responsibility to provide them with access to advice following the result. Since the introduction of pension freedoms and auto-enrolment, guidance from employers has never been more critical.
During this period of uncertainty, it is encouraging that working Brits are taking their financial future seriously, and that they want to understand their pension and what options are available to them now, so that they can plan for the long-term. With the right tools, small businesses can provide staff with the access to expert, cost-effective independent advice that they are looking for.
SME’s can make financial advice accessible to all employees across their business via online advisers such as Wealth Wizards. Wealth Wizards offers employees expert regulated financial advice through online web apps or wizards for a fraction of the cost of face to face advice. The key difference with providers of regulated financial advice is that they typically make personal recommendations to employees based on their personal circumstances and take full responsibility for that advice.
Combining real financial planning experts, with smart software technology and algorithms, users are able to get full and personal advice for their retirement and pensions through online web apps in 10 minutes. This form of digital advice is low-cost and transparent – a helpful solution for setting minds at rest during unpredictable times.
Business owners will no doubt have their own trepidation as Britain moves forward following the vote to leave the EU. However, those that recognise the apprehension that their staff are facing and address the need for pension advice, will be best placed to instil a sense of stability amongst the workforce. And stability is fundamental in these tumultuous times.
By Andrew Firth, CEO of Wealth Wizards