Financial planning for life's difficult moments

Seven ways employers can help employees prepare for life’s most difficult moments

“In this world nothing can be said to be certain, except death and taxes,” Benjamin Franklin famously proclaimed.

While financial planning often focuses on savings and pensions, far fewer conversations are had about preparing for the financial and practical challenges that follow a death.

Research suggests that when a loved one dies, many families feel unprepared for the administrative and financial responsibilities they have to contend with.

Although employers cannot take away the emotional impact of bereavement, they can play an important role in helping employees feel better prepared and supported.

Here are seven ways employers can help employees prepare for life’s most difficult moments.

One of the most important elements of being financially prepared is having a valid will.

Without one, a person’s estate is distributed according to legal rules, rather than their personal wishes.

This can make an already difficult time even more stressful for families, particularly if there are decisions to be made about property, savings or guardianship of children.

Employers do not need to provide legal advice, but they can help raise awareness of the importance of having a will and periodically reviewing it. Life events such as marriage, divorce or the birth of children can all affect whether a will remains appropriate.

Simply signposting employees to accessible guidance can help them take practical steps at a time that suits them.

Planning for the future often goes beyond writing a will, with a lot of people also wanting to think about who they would trust to make financial or health decisions for them if they were no longer able to do so.

A lasting power of attorney allows someone to step in and do this, providing clarity and reassurance for families. Many people, however, delay putting these arrangements in place.

Employers can support financial awareness by including these topics within wider financial wellbeing initiatives or educational resources.

Even when plans have been made, families often struggle to locate essential information after a death.

Documents such as wills, pension details, insurance policies and account information may be stored in different places, or be unknown to relatives. This can make an already difficult time far more complicated than it needs to be.

Encouraging employees to keep important documents organised and accessible can help reduce stress for families later on.

This might involve secure digital storage or ensuring family members know where key information is kept.

While these steps may seem simple, they can significantly ease the practical burden placed on families during bereavement.

Pension schemes and life insurance policies often rely on “expression of wish” or beneficiary nomination forms to determine who receives benefits after death.

These forms are separate from a will and may override it when distributing certain payments. If they are not kept up to date, benefits may not be paid to the intended recipients.

Employers can help by reminding employees to review these details periodically, particularly after significant life events.

Ensuring beneficiary nominations are accurate can help avoid delays, confusion or disputes at a time when families are already coping with loss.

Many employers focus primarily on the financial payout provided by benefits, such as group life or business protection insurance. These policies, however, often include additional services that can support employees and their families during difficult times.

For example, group life policies may provide access to bereavement counselling, probate guidance, funeral support services or financial advice for families following a death. Employee assistance programmes (EAPs) may also offer emotional support, legal information and practical guidance.

Taking time to understand the full scope of these services can help employers make better use of the support already available to their workforce. It can also ensure that employees and their families receive help when they need it most.

Reviewing protection and wellbeing benefits periodically can help employers ensure they are aware of the practical and emotional support that sits alongside financial protection.

Even when planning has taken place, the period immediately after a death can be emotionally overwhelming and administratively demanding.

Families may need to notify multiple organisations, obtain official documentation, arrange a funeral and begin managing the deceased person’s affairs. Many people are surprised by how complex this process can be.

Bereavement support services, counselling or employee assistance programmes can provide practical and emotional support.

Grief affects people differently, and there is no fixed timetable for how individuals process loss. Providing access to professional support can help employees navigate this period in a way that suits their needs.

Managers can play an important role when an employee is dealing with a bereavement, although many are unsure how best to respond.

Helping managers to understand what support looks like can make a real difference. This might include offering guidance on having sensitive conversations or offering flexibility when someone returns to work.

Bereavement can also affect colleagues and teams, particularly in smaller organisations where working relationships are close.

Empathy is really important and when workplaces acknowledge loss and respond with understanding, what is a difficult time for employees can be made a little easier.

Death can a difficult subject to talk about, but avoiding the conversation can make things harder for families later on.

Although employers cannot control the challenges that employees face outside work, they can help to foster a supportive environment.

By encouraging people to plan ahead and making sure support is available when it’s needed, they can make a difficult time feel less overwhelming.