Workplace financial wellbeing used to be a monthly payslip and a half-day workshop on retirement for those approaching pension age. But, today, the link between money and other areas of employee wellbeing means it’s a key part of the services offered by group risk and health insurance providers.
“Everyone’s starting to realise the connection between financial, mental and physical health,” says Nat Jutla, head of financial wellbeing and workplace strategy at Perkbox. “If an employee hasn’t slept well because they’re worrying about paying the bills, it will affect their mental and physical health.”
Workplace strain
In the workplace, this financial worry can manifest itself in different ways including reduced productivity, increased absence and conflict with other employees. It can also lead to more insurance claims, as Chris Morgan, head of product and proposition strategy at Canada Life, explains: “Mental health accounts for 21 per cent of the claims we see on group income protection, making it one of the leading causes of claims,” he says. “These claims aren’t all money-related but it’s often a co-contributor: if someone is going through family issues and separation, there will often be money worries too.”
It’s a major issue too. Axa’s 2025 Mind Health report found that 53 per cent of respondents say financial instability and job insecurity affected their mental health – making it the joint-leading external factor alongside ‘uncertainty about the future in a rapidly changing world’.
Tackling the taboo
Money may be a major cause of workplace worries, but there’s a significant challenge for those keen to promote financial wellbeing: it’s still a major taboo. “People are comfortable talking about mental health and menopause, but they struggle to talk about money,” says Jutla. “It needs to be as normal a conversation as discussing the weather.”
Given how often financial issues feature in insurance claims, providers are keen to normalise the money conversation. As well as increasing the financial wellbeing support they provide, these services are more prominent now.
Rather than being tucked away within the employee assistance programme, financial wellbeing is front and centre according to David Williams, head of group risk at Towergate Employee Benefits. “Insurers know they can throw everything at claims but if they’re not supporting financial wellbeing, employees will still be off work. A lot of the stress that affects people is money related.”
Raising awareness
While financial wellbeing deserves to be right up there alongside physical and mental health, insurers are mindful of employee reticence around discussing money. Subsequently, services provide different routes to support employees with financial issues.
As an example, Canada Life’s WeCare app provides a range of virtual services covering the medical, mental, legal and financial wellbeing of employees. These include talking therapies, GP consultations and a financial wellbeing telephone service where experts can provide support on everything from budgeting and debt to money matters around divorce. Morgan adds: “It’s important to integrate and connect the mental and financial wellbeing services. An employee may call struggling with mental health issues and, after talking to us, realise that money problems are the cause. They can then be referred to the financial wellbeing side for further support.”
Similarly, although group risk products provide a financial safety net for employees who need to claim, insurers recognise that if someone is unable to work, it could lead to money worries. As a result, a claim may trigger a referral through to the financial wellbeing service to help employees adjust their finances.
Proactive support
Alongside the services that can support an employee when they’ve got themselves into a financial mess, insurers are also recognising the importance of building resilience. “More work is being done around prevention,” says Jonathan Watts-Lay, director at Wealth at Work. “If someone isn’t managing their money well, even simple things like how to manage a monthly budget can help them avoid getting into serious amounts of debt.”
Digitalisation is making it easier to deliver this education. Rather than running a workshop on budgeting, which many employees would avoid if they felt uncomfortable admitting they struggle with their money, they can access the information they need through an app on their phone.
Williams says that apps are a game-changer when it comes to financial education. “No one needs to be embarrassed about what they don’t know,” he says. “They can access what they need, when they need it. This makes the information much easier to absorb.”
Normalising money matters
This shift towards prevention helps to break down the taboos surrounding money. By empowering employees through education, they feel more comfortable managing and talking about their finances. Jutla would like to see organisations take this a step further. “We need people to share their money stories to get rid of the stigmas around finances,” she says. “To do this, employees need to feel psychologically safe. Showing them what financial wellbeing help is available will help them feel more comfortable talking about money.”
As well as making financial wellbeing an everyday topic, Williams says he’s seen a shift in the type of information insurers are pushing out to employees. “We’re seeing a lot more webinars and financial education around topics such as buying a house, saving for retirement and budgeting advice,” he says. “These are things that everyone does and it really helps to normalise the money conversation.”
Shifting financial landscape
Good progress has already been made but many expect to see financial wellbeing take a major step forward in the next few years.
A key part of this could come from changes to the financial advice regime. Martin Parish, head of retirement, NFP Benefits Consultants, explains: “The FCA consultation on targeted support will create room for guidance. This will provide much more clarity for people. Do I need transactional support, such as taking out an Isa, or are my needs more strategic, for instance, consolidating my pensions?”
As well as helping employees understand what’s required, this focus on the lines between information, guidance and advice should give employers greater confidence in providing financial wellbeing.
Jutla says that sometimes employers shy away from offering financial wellbeing altogether because they worry they might be accused of giving regulated advice. “Employees don’t always need advice: they want tips on how to have a better relationship with money,” she explains.
Future developments
Greater confidence will drive product innovation too. Williams expects technology to play a larger part. “AI will help to take the personalisation a step further,” he explains. “We’re already at the cohort level but
AI will make it possible to fine-tune what’s delivered to each employee. This personalisation will make the information even more powerful.”
The human touch remains important too, with Jutla pointing to the financial wellbeing champions her company is rolling out as an example. “Employees will be able to have a confidential conversation with these champions and be signposted to appropriate support,” she adds. “It’ll help to create the right environment for employees to feel safe to talk about money.”
While there’s more to come, Watts-Lay says the space is showing signs of maturing. “Employers are beginning to realise they need to take a more strategic approach to financial wellbeing,” he says. “They’ve built up their content piecemeal and now need to ensure it’s more joined up and relevant to all employees.”
And, with pressure from insurers keen to control claims and regulators looking to improve outcomes for consumers, financial wellbeing is in rude health.
