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With almost half (47%) of UK adults experiencing characteristics of vulnerability, it’s vital that employers provide support in the moments that matter. But what does vulnerability look like and how can your clients best support members? Let’s take a look.
What does it mean to be vulnerable?
Any one of us could find ourselves in vulnerable circumstances at some point in our lives. Whilst vulnerability can look different for everyone, the FCA calls out four key drivers that could increase someone’s risk of harm:
- Health: Conditions or illnesses that affect people’s ability to carry out their day-to-day activities. This could be a long-term illness or a one-off incident – like a broken ankle – which could put someone in a vulnerable situation.
- Life events: Major life events such as bereavement, job loss, or relationship breakdown. These could have a significant impact on someone’s ability to manage their living costs and financial responsibilities.
- Financial resilience: Low ability to withstand financial or emotional shocks. So if someone’s circumstances changed overnight, would they have enough money set aside to weather any storms?
- Financial capability: Low financial understanding or low confidence in managing money. This could make it difficult for someone to make well-informed decisions about their day-to-day or long-term finances.
It’s also important to remember that some people might experience long-term vulnerability, whilst for others it might be temporary. It could even change from one day to the next. And vulnerability can affect people at all life stages.
More people could be affected by vulnerability than we think
The FCA found that 47% of UK adults showed one or more characteristics of vulnerability. But our own research at Standard Life indicates that this figure could actually be a lot higher.
As part of Phoenix Group, the UK’s largest long-term savings and retirement business, we led research in 2022 into how vulnerability is affecting our customers. We found that:
- 7 in 10 display one or more characteristics of vulnerability
- 1 in 2 have low financial capability
- 1 in 4 have low financial resilience
How we can help your clients support vulnerable members
Everyone has the potential to be vulnerable. And many of your clients’ members could be affected right now.
Here at Standard Life, we can help clients support members who are going through a tough time. We invest heavily in our vulnerable customer programme so that we can help people when they need it most. And just like vulnerability, our support comes in all shapes and sizes.
Here’s how we can support your clients:
Digital tools to help boost financial resilience
If your clients are with Standard Life for their workplace pension scheme, members get access to a range of digital tools to help build up their financial confidence and resilience.
This includes our financial wellbeing platform, Money Mindset*, which has a suite of content and resources to help members get to know their money better. With our Emergency Cash Fund Builder, members can set savings goals and set aside money for a rainy day. And our Benefits Finder tool makes it easier for members to find out which government benefits they could be eligible for.
First-time buyers can also use our Homebuyer Hub to guide them throughout their homebuying journey. From helping them understand how much they could borrow, right through to how stamp duty works, our Homebuyer Hub supports members during what can be a very stressful and financially-testing time.
Support from Samaritans-trained frontline colleagues
Talking about money worries can make a big difference to people’s financial resilience and capability. According to the Money and Pensions Service (MaPS) people who talk about money make better and less risky financial decisions, and feel less stressed or anxious and more in control.
Our frontline customer teams are here to listen to and support members. They’re trained by Samaritans on active listening techniques, helping them become better listeners and giving them the skills to support vulnerable members when they need it most.
Products and services designed with care at their core
Caring for those experiencing vulnerability underpins our entire culture, and we’ve created innovative ways to bring vulnerability to life for our colleagues.
We use immersive VR and technology – such as gloves simulating arthritis and glasses for simulating visual impairments – to help us walk in the shoes of others. Alongside our research and data, this helps us understand accessibility challenges so that we can design our products and services with vulnerability in mind.
More about our vulnerable customer support
To find out more about our award-winning vulnerable customer support and how we can help your clients support members, visit our vulnerable customers hub.
*Money Mindset is provided in partnership with Moneyhub Financial Technology Limited.
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Phoenix Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Phoenix Life Limited uses the Standard Life brand, name and logo, under licence from Phoenix Group Management Services Limited.
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