Almost three quarters of employees (72%) feel stressed about their finances, according to a recent survey by Hymans Robertson Personal Wealth. Nearly two fifths do not feel prepared for an unexpected financial emergency, and the situation can be so extreme that 27% of respondents have described their financial situation as struggling or in crisis.
The rising cost of living is blamed for having the most impact on finances, with 56% citing this as their biggest concern. This was followed by paying off debt (25%) and saving for retirement (25%). Combined, these findings paint a worrying picture about the stress levels of employees, claims the financial wellbeing and financial planning firm.
To help employers support their employees, the firm has launched an insight hub, ‘The Hidden Cost of Financial Stress’, which will share findings from the research and various resources, including an introduction to the first Employee Financial Stress Index, which will track employee stress levels year on year.
Commenting on the increasing role that financial stress plays in an employee’s day to day working life, Julie Hammerton, Managing Partner, Hymans Robertson Personal Wealth says: “Our research shows that low levels of financial resilience, and limited safety nets, are leading to high levels of financial stress. This will be having an impact on how employees work, engage and function. These should be seen as warning signs; a workforce that’s living this close to the financial edge is more vulnerable to stress, disengagement and absence. These findings clearly align with the recent FCA’s Financial Lives survey, which found that 24% of the adult population had low financial resilience. Together this paints a worrying picture regarding the huge impact financial stress is having on the UK’s workforce.”
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