[SPONSORED CONTENT]
With the end of the tax year around the corner, some members could be feeling stressed about getting their financial ducks in a row. Here’s why employers are in a unique position to help members navigate the annual deadline.
When deadlines loom, it’s understandable that panic may start to set in. The end of the tax year (5 April) is no different, and some members may be feeling under pressure to scramble together all their financial paperwork and use their annual allowances in time.
But what impact does financial stress have on the workplace? And how can your clients help members navigate through testing times?
Why supporting members who are stressed about money is important
Financial stress can affect members’ happiness, productivity, and confidence – both at home and at work.
Indeed, according to research by CIPD, 31% of people said money worries had negatively affected their work performance. This figure is higher for those earning less than £40,000 a year (37%), but even those earning £60,000 are feeling the effects of money worries, with 22% reporting the same.
The good news? Employers are uniquely place to play a positive role in helping members feel less stressed and more positive about their money. In fact, according to Standard Life’s annual employer survey, 68% of employers said financial wellbeing was their most important concern of the year.
Three workplace wellbeing initiatives to help combat financial stress
The impending deadlines of tax year end could be an added strain for some members. But given that financial stress affects almost a third (31%) of people, it’s important to support all members – whatever their financial circumstances.
Here are three wellbeing initiatives your clients could implement today.
Keep financial planning top of mind with regular communications
If members are feeling stressed about money, spending time planning could be a great way to ease the pressure.
Indeed, our Retirement Voice 2025 report reveals that even a little bit of planning can go a long way to helping people feel more positive about their finances.
To help, clients could send regular communications that promote the benefits of financial planning, and ramp these up during financial pinch points like tax year end. Doing so could remind members to get organised and get ahead of the deadlines, avoiding that last-minute stress.
If your clients are with Standard Life for their workplace pension scheme, they can pick from our range of ready-made campaign materials to help them communicate effectively across their workforce.
Raise awareness of making the most of yearly allowances
Clients could raise awareness of the different allowances that may apply to members’ personal finances, and the steps they can take to make the most of their money before the end of the tax year. This could demystify some of the complexities, and help improve members’ financial knowledge and confidence in the process.
For instance, your clients could share guidance on how members can claim pension tax relief through a self-assessment. This would be useful for those who put extra money into their workplace pension plan after they’ve paid tax and who are higher or additional rate taxpayers. If members wait until after 5 April to do this, they may miss out on this year’s tax relief.
Clients could also remind members about their Individual Savings Account (ISA) allowances. They still have time to consider maxing out the £20,000 limit across any Cash and/or Stocks and Shares ISAs they have before the allowance resets on 6 April.
Communicate the pros and cons of bonus sacrifice
If members have the option to put their bonus into their workplace pension via salary sacrifice, it’s a good idea for your clients to communicate how this works and the impact this could have on their future finances.
Indeed, members could save on tax and National Insurance deductions – and keep more of their bonus in the long run as a result – by putting it into their pension.
By sharing guidance on the pros and cons of salary sacrifice, your clients can help members make informed decisions about their money, and ensure they don’t miss out on the opportunity to give their pension savings a boost before the end of the tax year.
For more information on how to support your employees, take a look at our financial wellbeing articles for some ideas and inspiration.
To read more articles from Standard Life visit the content hub on Corporate Adviser – here.
____________________________________________________________________
Remember, a pension plan is an investment. Its value can go down as well as up and could be worth less than what was paid in.
Tax rules may change in the future. Tax treatment depends on your individual circumstances including where you live in the UK.
The information here is not financial advice. If you’re unsure, you should speak to a financial adviser.
Phoenix Life Limited, trading as Standard Life, is registered in England and Wales (1016269) at 10 Brindleyplace, Birmingham, B1 2JB.
Phoenix Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.