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Almost 1 in 7 UK employees are in the dark when it comes to pensions and insurance benefits available through their workplace, according to new research1.

Figures from a YouGov survey commissioned by Friends Life found that nearly 15% of workers did not know what financial products their employer provided.

When expanded out across the UK workforce, it means more than 3.7 million UK employees could either have paid-for benefits they were unaware of, or are missing out on the chance to have protection insurance or a pension2.

However, there is a desire to get financial products via the workplace. When asked which benefits people would consider taking out through their employer, pensions, life insurance, critical illness cover and income protection were among the most popular answers3.

"It's got to come down to communication," said Anna Spender, Head of Group Protection Proposition. "Employees need to know what's on offer and how it can help them. Giving them a few simple pieces of information will allow them to make more informed decisions.

"Not only are workers potentially missing out on really valuable benefits, but employers aren't getting the full value of the package they're offering. Life insurance, critical illness cover and income protection can make employees feel valued by their company and can play an important part in any staff wellness programmes. But if employees don't even know they're available employers aren't maximising the good will these benefits can create in staff."

The workers surveyed said employer contributions and subsidies were the most popular factor in encouraging them to buy a financial product via their employer. Getting a better price or deal than is available on the high street was also a common choice4. (See table below)

Research has also showed that nearly 60% of people would rely on their partner's salary or savings5 if they were diagnosed with cancer and unable to work.

"Employers could be the answer to plugging at least part of the protection gap we have in this country," added Anna Spender. "Employees can be offered some form of cover as part of their terms and conditions or through flexible benefit arrangements where they can purchase in accordance with their needs. Either way, it can help staff to feel more secure knowing they have some financial back up should the worst happen.

"Everyone should know what is available to them. Having almost 1 in 7 unaware of what's on offer is too many."

1 YouGov survey of 12,260 UK adults commissioned by Friends Life (2013-2014)

2 ONS Labour Market Statistics (Oct 2014) says there are 26,027,000 employees in the UK. 26,027,000 ÷ 100 x 14.5 (percentage of people who 'don't know' what financial services products their employer officers) = 3,773,915

3 YouGov survey of 3,922 UK adults commissioned by Friends Life

4 YouGov survey of 10,784 UK adults commissioned by Friends Life

5 Survey of 2,000 people carried out by One Poll on behalf of Friends Life (Q1 2014)

-ENDS-

For more information, please contact:

Ben Moss PR Consultant T: 0117 928 5843
M: 07827 832395 		ben.moss@friendslife.co.uk

Ref: N0192

Notes to Editors

Top 5 factors employees say would encourage them to purchase a financial product via their employer:

1. Employer contributions or subsidies

42%

2. A better price or deal than is available on the high street

37.8%

3. Easy to access or purchase

15.2%

4. Access to financial advice

14%

5. Exclusive products not available on the high street

13.3%

Friends Life provides pensions, investments and insurance for over five million customers. Our key business lines are corporate benefits, protection and retirement income.

Friends Life is the brand name of Friends Life Group Limited.

Our heritage dates back to 1810, with Friends Provident being founded in 1832 to help alleviate the hardship of Quaker families facing misfortune.

Other brands in the Friends Life group include:

  • Friends Provident International, which provides life assurance, pensions and investment products to Asia, Middle East, Europe, UK and other selected markets.
  • fpb AG, a wholly owned distribution partner in Germany.
  • Sesame Bankhall Group, which was formed in 2009, combining an IFA network, support service provider and mortgage club, to create a large distributor of professional support services to financial advisers.

Important

This news service is for information purposes only and does not provide any form of advice, recommendation or financial promotion. Any opinions expressed by third parties are those of the third party concerned and not of Friends Life Group Limited. Friends Life Group Limited does not accept liability for any errors or omissions or for loss incurred because of reliance on information or opinions given.

The content of the news items set out above are accurate only as of the date of issue and Friends Life Group Limited does not undertake any obligation to update them.

Useful links:
www.friendslifegroup.com/media-centre.aspx
www.flickr.com/photos/friendsimages
www.twitter.com/FriendsLifeTalk

To follow Friends Life twitter page on your mobile, simply text "follow FriendsLifeTalk" to 86444 (UK only)

Friends Life is a business name of certain companies in the Friends Life group including the following

Friends Life and Pensions Limited Company number 475201
Friends Life Limited Company number 4096141
Friends Life FPLMA Limited Company number 00004599

Each of the above companies is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority

Friends Life Marketing Limited Company number 5059179
Friends Life Investment Solutions Limited Company number 6389025
Friends Life Services Limited Company number 3424940

Each of the above companies is authorised and regulated by the Financial Conduct Authority.

Friends Life Management Services Limited Company number 983330 is an appointed representative of Friends Life Services Limited, Friends Life and Pensions Limited and Friends Life Limited.

Friends Life The Blue Line Limited Company number 3146254 is an appointed representative of Friends Life Marketing Limited

Suntrust Limited Company number 1460956 is not authorised or regulated by either the Prudential Regulation Authority or the Financial Conduct Authority.

Each company is an incorporated company limited by shares and registered in England and Wales with a registered office at Pixham End, Dorking, Surrey RH4 1QA

Telephone calls may be recorded. Friends Life is a registered trade mark of the Friends Life group www.friendslifegroup.com

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