Encouraging Signs

Published 13 June 2012

Up to 13.9 million British workers would be open to using a workplace savings platform – positive news for investment groups increasingly focussing on companies and their workers for future growth.

In fact, there is evidence that life and investment company growth plans are increasingly geared towards and dependent on workplace savings and corporate Britain.

Be its pensions, corporate individual savings accounts or a variety of flexible benefit offerings; many life and investment companies are expecting a larger proportion of their future growth to be derived from employers and employees compared to historical proportions.

Of the near 14 million people who would embrace a corporate platform, according to a new CoreData Research UK study, 11.1 million people would stem from the private sector and 2.8 million from the public sector.

In further positive news for product providers, only 6.5 million out of 29.1 million British workers have dismissed the notion of using a corporate platform for the purposes of saving and investing.

Some 22.6 million full-time and part-time workers either have a stated intention to use or remain undecided over whether to use a corporate platform in the event one became available.

From a simply stated point of view, and based on 29.1 million people employed in the UK, the research reveals a potential 13.9 million employees would be open to using a corporate platform. (The 13.9 million figure is the number of people that can actually be expected to use one after statistical measures were applied).

This is based on almost half of employees (46.1%) stating they’re likely to use or definitely use a corporate platform if their employer were to introduce one.

Despite seven in 10 being keen on the idea of saving via payroll, almost half of employees (55.1%) say they would prefer to plan for their long-term savings independent of the workplace.

Cost appears to be the main inhibitor for all employees. Almost two-thirds (64.8%) say this would put them off.

Too much jargon would also put 50% of individuals off from using a corporate platform.

The issue of a corporate platform creates a clear divide among the high net worth demographic.

This group is home to the greatest number of employees willing to use a corporate platform as over half (55.8%) revealed a stated inclination to use or definitely use such a service.

But more than double the percentage of high net worth (HNW) individuals state they would definitely not use a corporate platform compared to the mass market employees.

Over a fifth of the most affluent individuals (22.1%) refuse to use this service if their employer were to introduce it while fewer than one in 10 of the least wealthy (9.9%) express the same aversion to it.

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Inigo Rudio