Money worries are affecting workers’ performance and health, according to research from the Building Societies Association.
Almost a quarter of UK workers, 22 per cent, said money worries had affected their performance at work, while 19 per cent said financial concerns had caused them to take time off work due to illness.
Young workers are particularly affected, with one in three workers aged 18-24, 33 per cent, said money worries had made them ill and forced them to take time off work.
The research also found that 27 per cent of UK adults have less than £1,000 in savings, while 12 per cent have no savings at all. One in five, 21 per cent, said they could not cover an unexpected £300 expense.
The findings come as employers face growing pressure to address financial wellbeing as part of their wider employee wellbeing strategies, including through workplace savings schemes.
The BSA’s findings add to previous research highlighting the impact of financial pressures on employees and their ability to focus and perform at work.
CIPP chief executive Jason Davenport says: “Pay professionals have an important duty to keep employees paid accurately and on time. However, this role is increasingly extending to supporting employees’ overall financial wellbeing. This is no longer a ‘nice to have’; it’s fast becoming one of the most important conversations taking place in workplaces today.
“The CIPP is delighted to support the aims of UK Savings Week in getting everyone to engage with their finances. The first step towards financial resilience comes with savings, removing the need to rely on other funding, which may incur interest or penalties.
“The CIPP is also proud to be an active partner in the National Coalition for Workplace Savings, an employer-led initiative to encourage workplace savings. We believe pay professionals have a valuable role to play in supporting employees on their savings journey and helping to improve financial wellbeing across the workforce.”
The Building Societies Association head of savings, consumer & insight Andrew Gall says: “This research lays bare the human cost of financial insecurity and how money worries are quite literally making people ill.
“But the findings also highlight the benefits of saving. We know that those who are able to save, even small amounts, have reduced anxiety and are more able to deal with life’s shocks. And for people fortunate to have more substantial savings pots, having savings to draw upon can open up new opportunities.
“UK Savings Week encourages everyone to build better savings habits, whatever their starting point. Whether it’s £1 or £100, every pound put into savings helps to build peace of mind, long-term resilience, and better mental wellbeing.
“UK Savings Week brings together all types of organisation, from savings providers to charities to businesses, to get people to look again at their finances and take the next step to building their resilience and make the most of their money.”
