A regular savings habit is the cornerstone of short- and long-term financial stability. Having a healthy cash savings account means that your employees are prepared for financial shocks. Meanwhile, saving and investing for the future allows them to enjoy a good quality of life in retirement.

However, data shows that there is a significant “savings gap”, with many people struggling to build a financial buffer.

As an employer, there are ways that you could support your staff in closing this gap, so they can be more financially resilient now and in the future.

39% of people have £1,000 or less in savings

An emergency fund allows your employees to absorb unexpected costs, such as car repairs or damage to their home, without relying on high-interest debt from credit cards or loans.

Without a healthy amount of cash savings to fall back on, surprise expenses could disrupt their finances and force them to either borrow or make sacrifices in other areas.

It’s recommended that they keep three to six months' worth of expenses in an emergency fund. Unfortunately, research shows that many people may fall short of this.

According to Finder, 39% of Brits have £1,000 or less in savings, and around 25% have less than £200.

16% of those surveyed had no savings at all.

This means that many people lack the savings they need to protect themselves financially. For instance, Standard Life reports that 21% of people said they would need to go into debt to cover an unexpected £250 bill.

Your employees may also struggle to meet short- to medium-term goals such as buying a new car or saving for a holiday if they don’t have a regular savings habit.

Without a safety net in place, your team might experience more stress about their finances, and this could affect their performance in the workplace. This is why financial wellbeing is so important.

There is a 5-year gap between when workers want to retire and when they think they can afford to

Financial wellbeing is not only about short-term stability and protection from unexpected costs. To feel positive about their finances, your team also need to be confident that they are on track to reach their long-term goals, including saving for retirement.

Unfortunately, research reported by PensionsAge shows that there is a gap between the age at which people want to retire and when they feel they can afford to finish working.

The average preferred retirement age is 62, yet most expect to continue working until they’re 67.

The same study found that 38% of respondents believed they’d have a worse quality of life in retirement than they do currently.

This lack of confidence demonstrates that many employees feel as though they are falling behind with their retirement savings, and data supports this. For example, in 2025, the UK government reported that an estimated 15 million working-age people are not on track to have an adequate retirement income.

Your benefits package can help your employees close the savings gap

The level of benefits you offer to your employees makes a marked difference to their financial wellbeing and ability to save for the future in several ways.

Providing financial education could help your employees understand basic concepts like the importance of an emergency fund or how to “pay themselves first” by contributing to savings before spending elsewhere. This may encourage regular saving to improve short-term financial resilience.

Offering a workplace pension is an incredibly valuable way to help employees save for retirement and close the gap between expectation and reality.

Members of a Zurich pension scheme will have access to The ZIO app, which is an excellent resource for offering financial education. The Nudge feature allows employees to create a profile and see a range of financial planning information tailored to them. They’ll also receive personalised reminders (or “nudges) about key actions, so they can stay on top of their retirement savings.

However, as the cost of living rises, it is becoming more difficult to save enough for a comfortable retirement. This is why highlighting your benefits package is as important as ever

Reviewing your benefits package could be one of the most effective ways to help your employees close the savings gap and remain financially stable now and in the future.

Get in touch

If you have questions about your benefits offering, we are here to help.

You can email grouprisk@rfsl.co.uk or call 01534 502000 in Jersey or 01481 747940 in Guernsey to discuss protection and pensions today.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 50. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Rossborough Financial Services Limited is regulated by the Jersey Financial Services Commission under the Financial Services (Jersey) Law 1998 and licensed by the Guernsey Financial Services Commission.