- Building societies and BSA member credit unions are working to help create one million workplace savers by 2025
- 7.5 million people in work do not currently save
- The target supports the Money and Pensions Service which is planning to help an additional two million more struggling and squeezed people to save regularly by 2030
The Building Societies Association (BSA) has today announced the sector’s ambition to create a million workplace savers by 2025. The project was developed by the BSA’s member-led Savings Taskforce, which will work with partners to achieve the target.
This goal will support the Money & Pensions Service’s target, also announced today, to get two million more people who are either squeezed or struggling to start to save by 2030.
The BSA convened a Savings Taskforce from its member organisations to identify how the sector could help households to put aside regular savings to become more financially resilient.
We estimate that there are 7.5 million people in work who don’t have any savings¹. The Taskforce has focused its attention on workplace savings, where people in-work can choose to have deductions taken directly from their pay and placed in an easy access savings account.
In the coming weeks the Taskforce will finalise a set of resources that will be available to participating BSA members, to help them to set up workplace savings schemes with local employers.
Mike Regnier, Chair of the BSA’s Savings Taskforce, BSA Chair, and Chief Executive of Yorkshire Building Society said:
“We know that having a buffer of savings that can be drawn on in an emergency can help households deal with events that might otherwise put them into financial difficulty or lead them to call on high cost credit. There are also benefits for the individual from reduced anxiety and stress, which improves their wellbeing and helps them to be more productive at work.
We know that we can’t solve an issue as big as this by ourselves. We will therefore look to work with like-minded organisations and of course with employers across the country that are interested in improving their employees’ financial and mental wellbeing. By working together, we think we can get a million people saving direct from their salary in the next five years.”
Kate Creagh, Public Affairs Manager, BSA Tel: 0207 520 5905
Hilary McVitty, Head of External Affairs, BSA Tel: 0207 520 5926
Amy McCluskey, Press & Publications Officer, BSA Tel: 0207 520 5927
Notes for editors
¹ Estimates derived from FCA’s 2018 Financial Lives Survey indicate 7.5 million UK workers have no savings. The report can be found at https://www.ybs.co.uk/media-centre/news/workplace-savings/index.html
The Yorkshire Building Society has introduced an award winning financial well-being programme, and worked alongside Salary Finance to introduce a new direct-from-salary savings option to give colleagues a new way of putting money away. Senior leaders are committed to an open and supportive culture to promote financial well-being, and have introduced an easily accessible package of resources and information to help employees. They will be working to make the cost that financial worry has on industry crystal clear so every employer is aware of the opportunity to make a difference.
We proactively encourage good saving practices in our colleagues by offering them a £100 savings voucher to open an account in one of our branches once they have completed their probationary period.
This encourages them to become a Member of the Society and gives them voting rights. As well as encouraging good savings practices and promoting financial wellbeing. Regular saving is made simple and straightforward through payroll deductions.
CCU already works with 75 employers that offer savings through payroll. These employers have already recognised the benefits of supporting employees to build financial resilience and the positive impact this has on both staff and the organisation. CCU’s 23,000 members all save and understand the importance of having a nest egg to fall back on in times of need or saving for a specific purpose such as a holiday, car loan or even a mortgage deposit.
Examples come from members of the Savings Taskforce.
Savings taskforce membership:
Consists of representatives from Beverley Building Society, Capital Credit Union, Coventry Building Society, Hinckley & Rugby Building Society, Mansfield Building Society, Nationwide Building Society, Principality Building Society and the Yorkshire Building Society.