A recent national survey conducted by Lifetime – a financial wellbeing specialist and FCA -regulated company – has unveiled statistics about the financial stress of UK employees. The findings reveal that nearly 40% of UK workers are experiencing sleepless nights due to financial concerns, with a significant number avoiding discussions about their personal finances altogether.
This study, which surveyed 1,000 people nationally also highlighted the critical need for financial education and support in the workplace, as over 80% of employees surveyed expressed a desire for a financial wellbeing benefit from their employers.
Key Findings:
- Financial anxiety: From those surveyed, nearly 70% of employees report feeling uncomfortable discussing their finances, with many indicating that financial stress is a major source of anxiety in their lives.
- Impact on wellbeing: Nearly 40% of employees admit that financial worries are keeping them up at night, leading to fatigue, reduced focus, and decreased productivity at work.
- Demand for support: An overwhelming 80% of employees expressed a strong desire for financial education and wellbeing benefits provided by their employers. They believe that access to financial planning tools, education, and professional guidance could significantly improve their financial health and overall wellbeing.
The Cost of Inaction
Financial stress is more than just a personal issue; it’s a business issue with a cost implication. The link between financial health and employee performance is undeniable. Employees who are preoccupied with financial worries are more likely to experience lower productivity, higher absenteeism, and diminished engagement at work. These factors not only impact the individual but can also lead to a substantial decline in overall company performance.
Furthermore, the survey reveals that employees who feel supported in their financial wellbeing are more likely to remain loyal to their employers.
With 1.6 million mortgage deals set to expire in 2024, the financial pressures on employees are only expected to increase. Companies that fail to address this growing need for financial wellbeing risk higher turnover rates and difficulty in attracting top talent.
Quote from Lifetime’s COO Andy Wealthall:
“The results from this survey are no surprise to us,” said Andy Wealthall, COO at Lifetime.
“Although inflation is moving in the right direction and the recent base rate cut has been a beacon of relief for many, there is still a lot of uncertainty in the economy. We are seeing even more companies make a deliberate effort to utilise our tools such as the Lifetime app and Hub to access financial education and support for their employees. “Financial wellbeing is no longer a ‘nice-to-have’—it’s a necessity. Our survey clearly evidences that employees are struggling with financial stress, and they’re looking to their employers for support. By investing in financial wellbeing programs, companies can not only improve the lives of their employees but also strengthen their own organisational resilience.”