43% of women are financially vulnerable, compared to 30% of men according to a new Employee Financial Stress Index (EFSI), launched by Hymans Robertson Personal Wealth. It also highlighted generational differences in financial vulnerability with Gen X employees (aged 45–54) reporting the highest levels of financial vulnerability, while Baby Boomers show the greatest resilience. Millennials and Gen Z fall in between, with 37% and 35% respectively.
Commenting, Julie Hammerton, Managing Partner at Hymans Robertson Personal Wealth, said: “It’s widely recognised that financial stress isn’t just an issue for employees, but also for their employers, as it can lead to absenteeism and reduced productivity. This research provides clear evidence, though, that financial stress isn’t spread evenly across the workforce. Different groups may need more support than others from their employers to help them cope with financial pressures.”
On women being the most financially stressed group, she added: "It’s no surprise that women are more financially stressed than men. Women are more likely to take time out of work, earn less over their careers and are more likely to carry the burden of unpaid care. It all adds up, and it shows up in our data. There is no doubt that women face structural disadvantages that limit their ability to build financial security.”
Discussing the challenges faced by those in Gen X, she added: “The finding that 40% of Gen X are financially vulnerable builds on research we did last year which showed that 35% of people in this age group were suffering from poor mental health due to concerns about their future retirement finances. That research showed that more than a quarter in this generation were losing sleep over whether they would have enough money in the future. It’s not surprising this group is feeling vulnerable. It’s the generation that’s been squeezed on retirement savings, as most were born too late to benefit from generous DB pension schemes but born too early to fully benefit from autoenrollment. They’re also often juggling financial responsibilities for both children and parents.”
Explaining what employers can do, she said: “All of this points to the need for targeting help at these particularly vulnerable groups. There are a range of ways that employers can and do approach it. For example, running tailored educational programmes or providing targeted coaching is a route that many employers go down. Running sessions on how to close the gender savings gap or conducting midlife financial health checks, in the same way we have physical health checks, are just two examples. There are many more. When employers do provide support and help people take action, they often see that the stress lifts and people feel much happier, which in turns makes them more productive at work. Employers often prioritise mental and physical wellbeing when it comes to their wellbeing strategies. Worrying about finances can often be the root cause of stress. Increasingly employers recognise this. The key, though, is understanding that support ideally shouldn’t be ‘one-size-fits-all’. When you understand who’s under pressure, and why, you can actually design support that works.”
The EFSI’s measurements are calculated based on 2000 respondents answering questions relating to how often employees feel financially stressed, how regularly they’ve experienced financial stress over the past year, and how confident they feel about their financial future. The Index sits at the heart of Hymans Robertson Personal Wealth’s new insight hub, The Hidden Cost of Financial Stress, which brings together research and practical guidance to help employers take action.
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