The fact that today’s interest rate decision comes in the midst of Pension Awareness Week should not be understated. In the current climate of raging inflation, driven largely by the swelling costs of food and energy, saving money has become more and more of a challenge.
It’s unlikely that all savings accounts will reflect the changes to the base rate, and those with debts, particularly mortgages, will have seen their repayments increase dramatically in recent months.
Make no mistake, this will be harming the financial wellbeing of many people. It also makes long-term financial planning, particularly with major decisions like pensions, far more difficult.
As such, it’s more important than ever that people are given the tools they need to navigate an increasingly bleak economic landscape.
This needs to be done in the workplace, where not enough support is being provided. Indeed, the cost-of-living crisis has created the biggest drop in living standards for over 50 years, but just 39 per cent of businesses in the UK have a clear strategy in place for how they will help their staff this winter, according to Mintago’s research.
By providing better financial wellbeing support systems – whether that’s connecting staff with advisers or implementing a platform that allows them to manage their money more effectively – employers could alleviate a lot of the financial stress that many people are facing by simply giving them a clearer view of their finances.
With this in mind,, they must also make sure that people are thinking about their long-term financial security, despite the short-term difficulties they might be experiencing.