Co-op is rolling out a savings scheme for staff, designed to strengthen their financial security.
In partnership with Nest Insight, the opt-out scheme automatically enrols colleagues to save £40 by default each month. The amount can be amended, to a maximum of £100.
They can access their savings at any time without fees or penalties, making the approach “flexible and supportive of unexpected financial needs”, according to Co-op.
It follows a trial in which participating staff in its food business saved £100 after four months, and £200 after eight months.
The convenience retailer said it reinforced its commitment to tackling socioeconomic barriers that impact financial resilience and mobility, supporting its goal of creating a fairer and more inclusive workplace.
Co-op is encouraging other UK employers to explore similar approaches to workplace savings and is calling on the government to help employees save.
It believes this approach could be transformative for financial resilience across the UK, similar to pension auto-enrolment schemes.
“Our colleagues told us they needed help to start saving, especially for the unexpected, and autosave has proven to be a simple but powerful way to offer that support,” said Co-op chief people and inclusion officer Claire Costello.
“We’re preparing to make this scheme available to thousands more colleagues as we continue to roll it out, because we’ve seen the difference it makes in helping people feel secure, confident, and in control of their finances.”
Nest Insight director of research and innovation Jo Phillips said: “It’s great to see Co-op acting on the huge potential to improve financial resilience, mental health and productivity for its valued colleagues.
“The trials and research we’ve done with Co-op and other employers have shown that an opt-out approach to workplace savings is a game-changer – extremely effective in inclusively supporting low- and moderate-income workers to build greater financial security and peace of mind.
“Nest Insight is looking at how to make sure nobody is left behind as more employers choose this approach, and as policy-makers think about how to make it easier for more people to get started with saving via their workplace.”
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