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How employees can look after their money in a crisis – Employee Benefits

Investments

How employees can look after their money in a crisis – Employee Benefits

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Rising inflation, including increased bills and energy costs, coupled with interest rate rises, are all putting pressure on household finances. Those with investments may also be concerned about potential volatility in the market.

WEALTH at work, a leading financial wellbeing and retirement specialist, has collated a list of things that employees should consider to look after their money in a crisis.

Checklist for employees to protect their money in a crisis

1. Have a diversified portfolio

For employees who have investments, it is important in uncertain times that they spread their risk. It is much safer to have a diversified portfolio rather than someone having all their money in property, or a specific company which could make them vulnerable.

2. Minimise the impact of inflation

Inflation refers to the price increases of the goods and services individuals spend their money on. If the return on cash savings doesn’t keep up with price rises, the real value of savings will reduce over time. Whilst rising interest rates can be good for savers, the increases offered on savings accounts are usually significantly less than inflation, so over time the value of an individual’s savings, or what they are able to buy with them can fall.

If employees are saving for the long term, and are prepared to take some risk with their savings, they could consider investing their money. Over the long term, equity investments have often exceeded inflation, meaning investors have…

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