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Helping your employees to manage financial stress

According to the DNA of Financial Wellbeing: Money and mindset survey carried out last year, 72% of CEOs, 51% of company owners, and 74% of senior managers understand the impact of financial stress on employees and the knock on effects on the business. The research, which surveyed 10,000 employees and 580 employers, revealed that there’s been a significant increase in the number of employees with financial worries – from 58% to 63% over the last year.

Financial worries manifest in various ways with employees found to be losing sleep, being less focused at work and even taking time off due to the pressure of financial stress. This can add up to a substantial cost to businesses, with financial stress estimated to cost UK companies £120.7 billion every year. Employers are increasingly recognising the impacts of this and are taking steps to help employees to better manage their money.

Financial Lifestyle Management Ltd (FLM) covers all areas of wealth management and tax planning for personal finances and can help by removing financial stress for your employees. The following case study provides an example of how better financial management can removed significant stress.

“I’m currently a professional earning a high salary. I have never really considered my financial circumstances properly, but I know I need to take a longer-term view to improve my financial position and work/life balance in the future.”

While a high salary is great, it also means high taxes and while many employees believe that there is very little they can do to save tax, this is actually not the case.

As life becomes more complex, there are many ways employees can reduce the tax they pay each year. For example, saving £10,000 in tax each year, over 30 years, and then investing this at an assumed rate of 7%, could add up to nearly £950,000 extra for retirement.

FLM believes in the concept of ‘tax alpha’, which involves encouraging people to make at least small tax savings each year to compound life tax savings which can be utilised more efficiently. Exactly the same concept as compound growth on your investments. However, when you combine this with having to monitor the legal, political and economic landscape for any investments, it can quickly become a minefield without specialist help.

People have never worked harder than they do now, and at the same time managing money, and getting it right, has never been more difficult. An obvious example of this has been the wide-ranging changes to the pension landscape, with reductions in lifetime and annual allowances. In the last year alone the government have increased the tax take as a result of people over funding their pensions from £143 million to £517 million. FLM have been able to help many people through those issues, ensuring the right decisions are being made at the right time, and large tax bills avoided.

It’s also about keeping on top of the performance of those investments. For example, combining those investments with active government approved tax planning can provide a comprehensive financial plan and future financial security.

To find out how FLM can help support your employees and remove the stress associated with financial planning, speak to Norman Alongi today.

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    +44 (0) 207 353 4099

    IHC Ltd, 1-2 Bolt Court, London, EC4A 3DQ.

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