The third edition of Oliver Wyman's Ahead Of The Curve collection is now live. In this series of Oliver Wyman articles and video interviews, our partners discuss market-disrupting trends with industry leaders. This edition focuses on the changes taking place in wealth management and financial well-being.
At Oliver Wyman, we continue to think about where the next great opportunity in private equity might lie. With Ahead Of The Curve, we aim to provide our clients with exclusive insights and fresh perspectives to help them maintain a competitive edge. By partnering with thought leaders across industries, we aim to highlight the evolving trends and perspectives that are reshaping various sectors.
Expert advice on leading financial well-being and retirement solutions
In this issue, we speak to David Cassidy, CEO of WEALTH at work, a leading specialist in financial well-being and retirement.
Working with hundreds of organizations in both the public and private sectors, WEALTH at work demonstrates the growing importance of financial well-being. WEALTH at Work aims to provide an effective solution to the advice gap by delivering tailored financial education to employees in a way that benefits them, their employers, their advisers and WEALTH at Work itself.
Addressing the ‘advice gap’ through workplace financial education
Financial planning has become increasingly complex over the past century, leaving mass market clients in need of advice and education. Individuals must now take responsibility for their own retirement planning, navigating a complicated landscape of tax wrappers and investment products. In addition, the cost-of-living crisis has further highlighted the importance of financial well-being.
While wealthier individuals have access to a variety of wealth advisor business models, a significant "advice gap" has emerged for others. Technological solutions such as robo-advice have been touted as a solution, but they have not fully addressed the issue, leaving a large proportion of the UK population without effective financial help when it is increasingly needed.
Tailored financial education, delivered through the workplace to mass markets, enables individuals to make more informed and educated decisions to improve their financial resilience and future.
Watch: Empowering employees to improve their financial future
The three levers to enhance financial well-being
Sarah Long, head of new business at WEALTH at work uses the example of share plans to highlight the three dimensions of financial well-being: education and empowerment, critical to helping employees understand how plans work; diversification, to limit risk; and communication and engagement, to accommodate different learning styles through digital tools, face-to-face sessions, and online resources.
These three elements are essential to the successful implementation of financial well-being programs, fostering understanding, commitment and enthusiasm among participants.
Watch: Empowering employees to understand their share plans
Addressing the ‘advice gap’ and underscoring the importance of tailored workplace financial education not only empowers individuals but also aids in the evolution of the financial planning landscape. The three levers of financial well-being are instrumental in fostering informed decision-making and long-term financial resilience. As the financial tides shift, business must maintain a steadfast commitment to shaping a path towards a more financially secure future.