Financial worries are causing mental health problems for more than half of UK employees according to new research.
Barnett Waddingham found 60 per cent of employees said money worries were causing them to suffer from anxiety, stress and depression, highlighting the strong links between financial and mental wellbeing.
Their survey found this was a particular problem for younger workers with a fifth (21 per cent) of millennials saying money troubles caused mental health issue “very often”. This generation, aged 25-34, were most likely to see their mental health suffer due to financial concerns.
The findings also highlight that poor employee wellbeing has negative repercussions for employers. Two fifths (39 per cent) of employees say that their mental health declined as a result of their organisation not supporting their wellbeing during Covid-19, while 30 per cent searched for a new job and a quarter (25 per cent) worked less productively – demonstrating the impact on productivity and retention.
Employees who were put on furlough in March 2020, and remained so into mid-2021, have been even more likely to face money worries that have impacted their mental health. Seven out of 10 (70 per cent) of furloughed employees say so, compared to 55 per cent of non-furloughed employees.
The figure also rises for disabled employees, with 71 per cent saying they’ve had financial concerns that cause them to struggle from anxiety, stress and depression. Concerningly, a third (30 per cent) of disabled employees say that this is something they struggle with very often.
There is also evidence that mental health can effect an employee’s financial wellbeing, with two fifths (42 per cent) of employees admitting that suffering from stress, depression, anxiety affects the way that they approach spending or managing their money.
Women are more likely than men to think this, at just under half (46 per cent) compared to 36 per cent of men. And younger people are particularly likely to feel the effects of mental illness on their personal finances, with almost half (48 per cent) of those aged 18-34 stating this is an issue compared to just a fifth (19 per cent) of over-65s.
Barnett Waddingham principal David Collington says: “There’s no downplaying the impact that financial worries can have on our mental health and general wellbeing. Likewise, poor mental health can make it harder to manage money effectively and feel in control of our financial future. Since the pandemic, more employees have seen a fall in their income or changes to their job which can put a strain on households and families.
“It’s important for employers to be prioritising employee wellbeing, not only during periods of economic crisis, but consistently and regularly. Employers have a hugely significant role to play in supporting people’s mental and financial health, and in doing so, they are much more likely to cultivate a healthy and happy workforce that works productively and is loyal to the organisation.
“People should feel that they can seek support from their employer if they feel they’re not in good financial shape, and it’s causing worry or stress. Simply knowing the benefits that they’re entitled to or the support measures available can be a good step on the path to building greater resilience.”