20 September 2022

Costs are rising at the fastest rate seen for decades, which now means that people are struggling to survive from one pay cheque to the other. Many people like to have a buffer of cash behind them that they can fall back on, but the current cost-of-living crisis has meant that people are now having to use their savings and cash reserves.

What is the Current Situation?

It has been found that a third of workers in the UK are now losing control of their finances as they rely on living on one paycheck after the others without having spare money to protect them from the cost of emergencies.

In addition to this, it has also been found that just over a quarter of workers are also struggling financially, providing a real insight into the current financial situation in the UK. The last two years have been challenging for everyone, and the pandemic almost made us lose grasp of our familiar current situations as we had to forfeit things such as holidays and other expenditures that formed part of everyday life. However, just over a third of people could not cover the cost of their mortgage or utility bills, while 29% of people had to take advantage of a salary advance with 33% now saying that they now believe they will have to work longer before they can retire.

This is a precarious situation as it is recommended that people aim to have anything from three to six months worth of savings behind them to cover the cost of emergencies such as the replacement of a boiler or to cover the cost of being out of work but currently, this is becoming a difficult situation to manage for many.

The Impact

There is a significant impact of this situation on people because it causes self-destructive behaviours whereby people are smoking more, eating poorly and are drinking too much while just under a fifth are abusing substances. Along with this, two-thirds are suffering from depression and anxiety.

This has resulted in calls for employers to provide more support as tools are available to help struggling employees. The tools could help with financial planning and budgeting, but over half of those who have received support have said that the tools and resources positively impacted their situation. Furthermore, 42% also said financial apps and tools should be included in employee benefits.

This means that employees should be aware of what is available through clearer communication. However, not all employers are aware of the available salary sacrifice and benefits packages. Therefore, education is important as well as simple access. This will ensure that employees can benefit from various packages and initiatives that could help ease their situation and give them some breathing space regarding their finances.

How we can help

At Corinthian Benefits, we work with a wide range of businesses – delivering the best pension and benefit package for your business and your employees. We’re passionate about providing the best possible service to every one of our clients and their teams. Our members have access to various tools, including our budget calculator and can also access the benefits of salary exchange to save money. Also, in terms of perks, we can offer a discounted shopping portal, and cash plans have many tangible benefits, including help towards dental and optical and even money towards prescriptions.

Let’s talk

We offer a no-obligation call with a member of our friendly, experienced and supportive team. We are here to make your life easier by providing the best possible service – pure and simple. Visit our website www.corinthianbenefits.co.uk/ or drop us an email at [email protected] so we can discuss how we can support you and your employees.