Six in ten workplaces do not offer financial coaching as a benefit despite people that have used it being strong advocates for its value.
Research shows that 87 percent of employees haven’t used financial coaching, while 34 percent said they were unsure about what it actually entails. In addition, 28 percent of employees think financial coaching is not relevant to their financial situation.
However, employees that have access to financial coaching, and use it, are vocal about its wide-reaching benefits, according to research with 1,203 employees by TrinityBridge’s Workplace Financial Wellbeing Services.
Following coaching, 37 percent said they feel more confident about their finances, and 34 percent said they better understand how to manage their money.
The results are outlined in the report ‘The Value of Financial Coaching’, which also shows that only 12 percent of UK workplaces offer financial coaching. However, separate Wealth at Work research from 2024 found that 43 percent of employers planned to add it to their wellbeing programmes in the next few years.
Researchers from TrinityBridge said this is good news for the 28 percent of employees who reported that they would use financial coaching if it were available through their employer. Interest in this type of coaching rockets to 49 percent among younger employees, aged 18 to 24.
Some employees may already have access to this benefit but not know. A fifth (20 percent) of workers said they didn’t know whether financial coaching is available via work and the lack of clarity about what it entails means that 34 percent of employees (only 22 percent of those aged 18 to 24) said they didn’t know if they would even use a financial coaching service.
Employees that use the service most are often on higher incomes, with almost half (47 percent) earning £100k plus. Among people earning £80-£100K just 18 percent use coaching, while among people earning £40k-£60k it is 13 percent. As financial coaching may be part of the solution for closing the financial advice gap, the fact that its usage drops as people earn less shows there is work to do. Researchers said a push from industry and workplaces to communicate the value of financial coaching to those who need it most would help.
Another reason workers do not take up financial coaching is because they already feel confident managing their finances (60 percent). However, researchers said that this appears to be at odds with the reality of people’s finances reported in the media. In addition, 11 percent prefer to use a financial adviser and 9 percent said they prefer to get guidance from family and friends, as well as other online sources.
The research results were clear that for people who use this type of coaching, the positive impact is huge and goes beyond finance. Nearly one in four (37 percent) now feel more confident about their finances, and 34 percent said it has helped them to understand how to better manage their money. More than a quarter (27 percent) feel equipped with tools to make better money related decision, and 25 percent feel more positive about the future (rising to 33 percent for people aged 25-34). Almost one in five (19 percent) said their mental health had improved, which rises to 26 percent for those aged 35-44.
Among people that use this benefit, 41 percent use it several times a year, with the figure rising to 57 percent among those aged 25-34. Half that number (21 percent) have used it just once. One in five (19 percent) said that financial coaching provides reassurance that there is someone to help in future if they need it.
Researchers said the results show that the 38 percent of employees who ‘wouldn’t use financial coaching’ are missing out on improving their financial fitness. Half (50 percent) of those who have used it have increased financial confidence, while 43 percent use it to improve money skills and money management (rising to 53 percent among people aged 25-34). A fifth (22 percent) reported that coaching helped to change their behaviours with money in the long-term.
Jeanette Makings, head of Workplace wellbeing Service, TrinityBridge said: “As employees across the UK continue to face the challenges of a rising cost of living, coupled with an expanding gap in those accessing financial advice, the potential of financial coaching is increasingly important as an essential component of workplace wellbeing strategies.
“The common thread running through this report is that financial coaching is highly valued by those that have used it, but for those that haven’t it, is frequently misunderstood. It evidences a strong need for more education as to what financial coaching offers and how it can help any financial situation. The positive impact of financial coaching for those who use it is both tangible and significant. For employers too, it offers a highly effective means of boosting financial wellbeing, increasing staff engagement, and empowering them to take control of their personal finances, with corresponding benefits for overall wellbeing, and productivity.”
