When it comes to saving money, every little bit helps – especially when it’s made easy with employee savings plans! More than half of UK households don’t have the minimum recommended ‘rainy day’ fund – with 13% of adults having no money set aside in case of an emergency.
If you fall within these statistics, you’ve probably tried to build a savings fund unsuccessfully or are just not sure where to start. While these challenges can be overwhelming, there is a silver lining. Ever heard of employee savings plans? Your employer might already have the tools you need in place.
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What are Employee Savings Plans?
An Employee Savings Plan is a benefit offered by employers that allows employees to save over many years via paycheck deductions or other mechanisms for a variety of goals, such as emergency funds or holidays.
But how do you know what’s available to you? This blog details how to find out if your employer can give your savings a boost.
Check your benefits for special savings offers
Some employers partner with financial providers to offer employees special deals on savings products. For example, you might be eligible to open a savings account with a bank or specialist savings account provider, and receive a starter bonus or boosted interest rates due to your employer’s partnership with them. These kinds of offers can make it much easier to get your savings journey off the ground.
Your employer may also offer Credit Union Accounts to give you access to savings accounts alongside lower-interest loan options. These are often community-focused financial institutions that offer flexible, employee-friendly terms.
To check if your employer has such offers, log in to your HR or benefits portal, or reach out to your HR team. These opportunities are often promoted internally but might get overlooked.
Explore payroll-linked savings schemes
Another common option is payroll-linked savings, which allows you to save directly from your paycheck. The great thing about this is that it’s automatic – you choose an amount to set aside, and it’s deducted from your salary before it hits your bank account. This way, you won’t even miss it, and your savings can grow effortlessly in the background.
The Benefits of Payroll-Deducted Savings:
- Automatic and effortless: The money is transferred automatically, so you don’t have to worry about making time to save.
- Discipline: Since you never see the money in your current account, it’s easier to save consistently.
- Convenient: Many employers partner with credit unions or financial institutions to offer payroll savings, giving you access to favourable terms and rates.
- Start with an emergency fund: An emergency pot can be crucial if you face unexpected expenses, and this scheme can help you build that fund steadily.
Research from Money and Pensions Service shows that 70% of employees enrolled in these types of schemes saved every month and were 18% more likely to keep consistent contributions. Does your company offer a payroll-deducted savings scheme? It’s worth asking. If they do, you could be just a step away from setting up an emergency pot with zero hassle.
How to get started
- Ask HR: Find out what savings products or payroll schemes your employer offers.
- Sign up: If you’re eligible, signing up is usually a simple process through your HR portal or financial wellbeing provider.
- Start small: Even saving a little each month can add up over time, especially with any employer-provided bonuses or perks.
Don’t miss out on securing your future
Taking advantage of an employer savings solution can be one of the easiest ways to start building an emergency fund. If you haven’t already checked what’s available, now’s the time! Whether it’s a special deal with a savings provider or a payroll-linked scheme, your employer could have a solution that’s perfect for you.
