With the cost-of-living crisis biting every business and household in Britain, isn’t increased financial literacy the need of the hour? Would pressure be eased a little if we had been taught the essentials about debt, interest rates, pensions and even the joys of tax? Raising our financial wellbeing? I think so.

As a privileged child growing up in one of the busy, bustling metropolis cities in India, the education system was unsurprisingly unsatisfactory. I say this only because of the lack of practical financial knowledge we received that would have potentially shaped us into efficient, well-educated adults. Wouldn’t we all want to be prepped when it comes to budgeting, investing, saving, etc. as we enter the never-ending cycle of adulting?

As I belong to the Gen Z cohort, I for one don’t mind splurging £3.59 on a cup of coffee 365 days of the year, in stark contrast to my predecessors (oh, I can feel my mother’s disapproving eyes piercing through me). Well, I wouldn’t do this mindlessly if I was introduced to the financial culture during adolescence. One survey gathered that a meagre number of 32% of teenagers were familiar with how credit card fees and interest work, and an alarmingly low number of 42% wished for their parents to introduce finance into their lives. 

Full marks, therefore, to Redington’s financial education charity which has just kicked off a seven-year project to study links between education and social mobility. ‘Redstart’ is to work with over 40 primary schools in underprivileged areas of the country to examine whether giving children formal lessons about managing money can benefit them later in life. Its aim is to improve the financial knowledge of 4.7 million children by 2030 by providing a blueprint for a national financial education policy. 

This could be the beginning of something important…


Could the inclusion of financial literacy earlier on in life lead to greater financial inclusion later?  Nikhita Alex draws on person experience … and of a new initiative that could be the start of something big.

We’re often tasked by current and potential clients to create campaigns and ideas that 'cut-through'.

And last week as Simoney Kyriakou at FT Adviser reported, it was Dead Happy that has generated cut through – of a kind at least. And I should caveat here that Dead Happy isn’t a client of ours. 

Dead Happy is a life insurance brand, with a pretty punchy name, and positioning as it is. A disrupter in the life insurance market, it’s out there to look and feel different. I remember when it launched and its naming was the subject of much debate in the office. 

And it’s right that there should be innovation in the financial services markets, to bring about change, fresh thinking, and mix it up a bit. There’s no denying that the UK’s protection gap needs fixing. 

The Financial Conduct Authority’s Financial Lives survey, published in 2021, estimated that about half of the UK population do not hold any protection insurance – of which life cover is generally the cheapest. 

And much of Dead Happy’s work to date has been irreverent, funny - seeking to destigmatise death and get people talking about it.

But an ad using the face of one of the UK’s most notorious serial killers, in my view, and in those of most people I’ve discussed it with, has gone beyond irreverence into something more like contempt. Contempt for all those whose families experienced the pain of loss because of him and contempt for those thousands of doctors who believe so strongly in the sanctity of life.
Sometimes that idea in a brainstorm that feels a little too out there, or is said as a passing comment, is the gem that you have been looking for to hang everything off. 

And sometimes it’s just too far and that’s what Dead Happy is now dealing with. 
At Teamspirit we try to give every idea the overnight test – stop, reflect and then think how it might play out, before hitting the accelerator. 

And that’s not to say that death can’t be mentioned or used in ads. In 2011 Aviva used Paul Whitehouse to great effect in a spot that was full of genuine empathy. https://www.youtube.com/watch?v=TkyoCHCZlKw 

And this great TV spot with Bob Monkhouse shows you can have both empathy and cut through. https://youtu.be/xiGNvXbofwY 

### Sources 

FT Adviser - https://www.ftadviser.com/protection/2023/01/24/dead-happy-puts-murderer-harold-shipman-in-advert/

Avivia - https://www.youtube.com/watch?v=TkyoCHCZlKw

Bob Monkhouse - https://www.youtube.com/watch?v=xiGNvXbofwY 


“Sometimes that idea in a brainstorm that feels a little too out there is the gem that you have been looking for to hang everything off. And sometimes it’s just too far. Jim Poulter, Director at Teamspirit,. 

It's clear from vast amounts of research that pensions remain a tough nut to crack. Which is surprising when you think about it. Millions of people pump their hard-earned cash into investments that can be used for their future… but letters continue to be shoved to the bottom of drawers and online account details quickly forgotten.

But why are people so unengaged with something that (at least to us) is so exciting and rewarding?

The answer may lie in how easy it is to find the information needed. For example, 51% of people think it can be challenging to access pension information.(1) And if it’s hard to find the numbers, it's even harder to take any sort of next step.

However, access isn’t the only hurdle we must navigate – knowing what to do with the numbers is also a struggle. In fact, only a minority of 35-45-year-olds said they either 'strongly agree' or 'tend to agree' with the statement 'I feel I understand enough about my pensions to make decisions about saving for retirement.'(2)

So even now, in 2022, people are still calling for clarity, convenience and confidence.

All of this raises, however, an interesting question: who is actually responsible for all this? The provider, the saver, or some larger power/regulator? 

Some may argue it's entirely on savers themselves to shape up and take charge of their futures. But that’s easier said than done, clearly.

70% of people believe pensions can be overly complex and complicated to understand.(1) So could it be that while interfaces are being made simpler, it’s not how you use them but what’s in them that could be causing such low engagement rates? After all, if you’re asked to choose an outfit for a formal event, you may be able to browse a catalogue with ease but if you don’t know the etiquette involved then it’s going to be a scary decision without guidance. And that’s a simple choice in comparison.

It doesn't stop there either, as there are deeper concerns still. Research has found that 16% of people aged 40-70 haven't even started saving for retirement.(3) So why would they need an easy-to-use app if they’ve nothing to check? This could suggest starting even further up the chain could be beneficial too.

Of course, it’s understandable there’s no quick fix to the pension engagement conundrum, and there are initiatives and companies giving it their all to try to make everything easier, more accessible, and sometimes even fun. But, as with anything in life, there are more complex moving parts to pensions than first meet the eye, and trying to create a multi-pronged approach that tackles all of the above and more is no cakewalk.

If we create well-rounded strategies backed up by expert insights, and use these to create exciting engagement experiences, there's a chance we could turn all of this around. But it requires an incredible amount of knowledge and experience, which we'll explore in our second article on pensions disruption: 'Communication – rethinking the approach to pensions'.

__Sources__

(1) https://www.abi.org.uk/globalassets/files/publications/public/lts/2022/britain-things-pensions-dashboard-report-jan-2022.pdf 

(2) https://ifs.org.uk/publications/14365 

(3) https://www.gov.uk/government/publications/planning-and-preparing-for-later-life/planning-and-preparing-for-later-life 

It’s clear from vast amounts of research that pensions remain a tough nut to crack. Which is surprising when you think about it. Millions of people pump their hard-earned cash into investments that can be used for their future…

Created in partnership with __[The Finance Innovation Lab](https://financeinnovationlab.org/)__, our __[For The Better](https://teamspirit.co.uk/for-the-better)__ award is back for another year. And we’re once again on the lookout for purpose-driven financial businesses we can support.

Now in its fourth year, the award will provide £15,000 of communications expertise to an organisation that’s helping to change the world of finance for the better.

It could be an ethical bank, mutual, credit union, community development finance institution, or building society. Whatever the type of business, the winner of the award should show how they’re doing things differently and have social or environmental purpose at the heart of their business model.

Last year, we helped __[Credit Unions of Wales](https://creditunionsofwales.co.uk/)__ launch __[Moneyworks](https://www.moneyworkswales.com/)__: an ethical payroll scheme that works for businesses, employees, and our communities. Since the pandemic hit, many workers have struggled to make ends meet, as well as with their mental health. So Credit Unions of Wales launched this project to help businesses look after the financial wellbeing of their employees and help them perform at their best. And to support the launch, we created a toolkit to engage employees and aspire to become Moneyworks Mentors, to help their colleagues feel financially well too.

We’ve also supported __[Fair Money Advice](https://www.fairfinance.org.uk/money-advice/)__ to challenge debt stigma through an impactful PR and social media campaign. And we helped __[Vestpod](https://www.vestpod.com/)__, a community platform that helps to financially empower women, double their Instagram following and achieve amazing press coverage.

So, if you (or someone you know) are on a mission to make a difference, applications are now open! __Apply online before 4th July 2022__ by filling out the short form on our __[For The Better page](https://teamspirit.co.uk/for-the-better)__. Simply detail why your organisation should win this award and what difference tailored communications expertise could make to your work.

Good luck!

![10216 TS For The Better Header 1920x1080 Option-1](//images.ctfassets.net/sxw14dxmazhg/2XaxKmPTpyp3IHAGmxhMnO/91cfed74b549e314ee27489385eb5f61/10216_TS_For_The_Better_Header_1920x1080_Option-1.png)

Our For The Better Award is open for applications! Which means another purpose-driven financial organisation could get £15,000 in communications expertise to help them on their mission. Could it be you? Or someone you know? Find out more...

The House of Lords has asked Ben Broadbent, deputy governor of monetary policy at the Bank of England, to explore the possibility of introducing a central bank digital currency via distributed ledger technology (DLT), akin to Bitcoin and blockchain.

At Teamspirit, we’ve been following the rise of DLT for some time, looking at which industries, organisations and governments are starting to explore the potential applications for this new technology.

Across financial services, the introduction of DLT offers the potential for increased administration efficiencies across - Broadbent predicts it could produce around $16billion in yearly admin savings for the sector - and could help make banks safer against problems like market instability by reducing the risk of a run if a lot of people suddenly want to close particular accounts.

But, Broadbent has also cautioned against the potential over-reach of DLT. If people are able to hold digital accounts with the central bank and begin to take their deposits away from banks, financial institutions could find it harder to make loans and have to rely more on wholesale markets and focus less on consumer offerings.

To find our more about what DLT might mean for finance, read our new paper – <strong>[Culture and Communications in a Blockchain World](https://www.teamspirit.uk.com/culture-and-communications-in-a-blockchain-world/)</strong>

Are we ready for Britcoin?

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