5 valuable work benefits that could boost your financial wellbeing

08 September 2023

The “great resignation” is set to continue. If you’re searching for a new job, the salary is probably crucial when deciding if an offer is right for you. Yet, there are non-salary work benefits that could boost your wealth that you may be overlooking when you weigh up an opportunity. 

The Global Workforce Hopes and Fears Survey from PwC found that the cost of living crisis is pushing more workers to search for a pay rise. In fact, in the UK, 23% of employees say it’s likely they’ll change jobs in the next 12 months.

Globally, the study found workers who are struggling to pay their bills are among the most likely to seek a new job, second only to those who feel overworked. 

So, for many workers, the salary on offer at a new job could influence their decision. If improving your long-term financial wellbeing is your goal, there could be other factors that are just as important. 

Here are five non-salary benefits that may boost your wealth or improve your financial security. 

1. Matched pension contributions 

Under auto-enrolment, most employees are automatically enrolled in a workplace pension scheme, which their employer must also contribute to. 

The minimum contribution level for employers is 3% of your pensionable earnings. 

As a workplace benefit, some employers may match your contribution up to a certain point. 

While you wouldn’t benefit immediately from the additional pension contributions, they could add up to provide more freedom in retirement. 

Your pension is usually invested with the aim of delivering returns over the long term. So, as well as more money going into your pension, it has an opportunity to grow even further. 

2. Enhanced sick pay policy 

If you were unable to work due to an illness, how would your finances fare?

In 2023/24, Statutory Sick Pay (SSP) is just £109.40 a week and is paid for up to 28 weeks. For many people, SSP isn’t enough to cover essential outgoings, and taking time off work could place a real strain on their finances. 

An enhanced sick pay policy could provide you with peace of mind. Sick pay can vary between companies, so checking how much you’d receive if you were ill and for how long may be useful.

While you hope you won’t be too ill to work, it’s a benefit that could prove to be valuable. 

If you have income protection in place, which would pay out a regular income if you were too ill to work, an enhanced sick pay policy may mean you could choose a longer deferment period, which might reduce your premiums.  

3. Group life insurance 

If your family relies on your income, life insurance could improve their financial resilience.

Life insurance would pay out a lump sum to your loved ones if you pass away. It is possible to take out life insurance yourself to protect your family. However, some employers will offer group life insurance to employees as a benefit. 

Often, life insurance provided by an employer will be linked to your salary. So, if you pass away, your family may receive three times your annual salary. You should check the details with your prospective employer as the level of protection offered can vary.

While you may benefit from life insurance through work, taking out further protection yourself could still be valuable.

4. Salary sacrifice opportunities 

Salary sacrifice involves taking a lower salary in return for another benefit. For example, you may accept a lower income in favour of higher pension contributions.

As your income will be lower, salary sacrifice could reduce your tax bill now. Depending on the benefit you receive in return, it could also improve your long-term financial security. 

When you’re weighing up the pros and cons of salary sacrifice, it’s important to consider both the short- and long-term impact it could have on your finances. If you’re not sure if salary sacrifice is the right option for you, we could help. 

5. A development or training plan 

An employer that’s willing to invest in your development could set you up to secure a higher salary in the future.

The PwC survey asked employees to rank skills that are important to their future careers. Interestingly, skills like adaptability, critical thinking, and creativity were ranked higher than technical ones. 

Setting out your career goals could help you identify which skills or experiences you want to focus on. It may help you choose an employer that will support your aspirations and provide the opportunity you need to develop.

Employers that offer a training budget or in-house development scheme could help to support your career prospects. 

A financial review could help you get the most out of workplace benefits

Whether you’ve switched jobs to secure a higher income or for development opportunities, a financial review could help you stay on track to reach your goals.

If your new employer offers workplace benefits, we could assess how they fit into your wider financial plan and which ones may be valuable to you. Please contact us to arrange a meeting. 

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.

Workplace pensions are regulated by The Pension Regulator.

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and conditions and may have exclusions.

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