More than half of all employees experience worry when managing their finances with Generation Z and millennials experiencing the highest levels of financial anxiety, according to Aviva.
According to new findings from Aviva’s ‘Age of Ambiguity’ study, more than half of UK employees, or 54 per cent, report feeling concerned about managing their finances.
Aviva’s research examines how employees feel about the impact of change and uncertainty on areas such as their jobs, finances, and general wellbeing in times of increased instability that are affecting households and businesses throughout the UK.
According to research conducted in June 2022, anxiety is causing people, particularly members of younger generations, to avoid thinking about money altogether. Nearly 60 per cent of Generation Z and millennials aged 18–41 reported taking this stance because they believe “they are often out of my control.”
Generation Z and millennials report the highest levels of financial anxiety across all sizes of organisations, 69 per cent and 73 per cent, respectively, which causes people to avoid looking at financial concerns out of apprehension about what they will find. This is significantly higher than older cohorts, with just over a third or 36 per cent of baby boomers and around half of Generation X aged 42–57 reporting similar levels of anxiety while managing their finances.
Aviva director of workplace savings & retirement Emma Douglas says: “Understandable though it may be for us all to be looking for ways to avoid facing harsh financial realities right now, ignoring our financial situation altogether isn’t going to help. We need to encourage people to realise that engaging with our finances will provide vital insight that can help alleviate problems occurring in the future.
“It is a difficult time for many, with some demographics feeling the cost-of-living crisis more acutely than others. Our research has shown that younger workers are most likely to be avoiding engaging with their finances due to feelings of anxiety and a lack of financial resilience. However, despite it being a daunting prospect, engaging now is the best course of action.
“As most people’s primary source of income, the workplace is a key environment to support an employee’s financial journey and employers can often be looked to as a trusted source of guidance on financial matters. At the same time, it’s abundantly clear that businesses and individuals are under considerable pressure in the current climate.
“It’s vital we find ways to share learnings and collaborate across the business community to make tools and support more widely available to UK employees, so that – wherever possible – companies have the ability to offer or signpost people towards financial education seminars and online tools; encourage regular financial check-ins; promote useful resources via existing employee benefits and assistance programmes; or even offer access to financial and debt advice, to help employees to navigate their current financial pressures.”