Both employers and employees are open to using robo-investing to support savings and investments, according to new research from Smarterly.
More than two-thirds (71.2%) of employees would use robo-investing if their employer introduced it, while even more (80.9%) of 18-35 year olds would use it. Interest from the over-55s is more muted at 52%, but this group is generally well-catered for with pensions provision.
On the other hand, nearly half (43.5%) of employers say it would be easier for employees to invest if they had robo-investing, while 35.4% agreed their organisation would benefit from offering employees robo-investing.
Steve Watson, head of proposition at Smarterly, said,
“Employers have understandable concerns about regulation, so being able to support employees with savings and investments without getting personally involved helps them with employee engagement.
“‘Robo-investing’ uses computer algorithms to build investment portfolios, making it easier for individuals to invest. Platforms provide choice and clearly outlined options, enabling employees to make informed decisions, so the employer is enabling support, but from a distance. Employers do not need to get involved in their employees’ savings habits – but they should provide the tools to help them manage their finances more effectively at every stage of their career.”
The independent research takes into consideration views from 1248 employees and 508 HR professionals in UK businesses.