Education key to financial security

Zurich and Oxford University publish report on securing financial security

Education key to financial security
Financial education is key to securing personal financial security, a new study shows.

Zurich together with the Smith School of Enterprise and the Environment at the University of Oxford, released a report last week that describes how governments, employers, insurers, intermediaries and individuals can work together to close income protection gaps, and how public and private partnerships can play a crucial role in securing individual financial security.

Zurich CEO Europe, Middle East & Africa Gary Shaughnessy said: “Our research shows that a combination of several factors us outing people increasingly at risk of not having financial security as they age.

“Unfortunately, this comes at a time when governments in developed nations are generally spending less on welfare benefits in response to the increasing cost of an ageing population. This present a real challenge to society. We all need to act to foster and implement the identified solutions,” Shaughnessy said.  

Other recommendations for public and private partnerships outlined by Zurich include:
  • Insurers need to develop basic insurance products to be introduced via employers under auto-enrollment, with additional features available for individuals wishing to purchase them.
  • Employers should enroll the workforce in contribution-based income protection insurance schemes (with an opt-out clause) as part of their employment contracts. Provide employees with ongoing financial education and training, including the use of digital tools.
  • Governments should regulate and certify approved IPG insurance products and use fiscal incentives to encourage compliance.
  • Individuals should buy on the effectiveness of financial education and literacy campaigns.

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