Half (54%) of employees have revealed that their mental health has declined due to concerns about their financial situation, according to new research by financial wellbeing platform Wagestream.
Its State of financial wellbeing index 2024 report, which was compiled after surveying 2,000 employees, found that in the three months to May, 60% of respondents worried about money at least once a week, with 21% worrying about their finances every single day. Almost half (47%) experienced stress and 33% struggled to sleep.
Almost three-quarters (74%) have not told their employer about the issues they have been facing due to their money worries, with 40% not wanting their employer to know they are struggling. Just below one-third (30%) feel ashamed to discuss it, a quarter said they were brought up not to talk about money and 18% do not trust their employer.
In the past three months, almost a quarter (23%) said they are currently having difficulties making decisions about money. One-third (32%) would not seek professional advice if their mental health was suffering due to their financial situation and 12% would not tell their employer due to fear of discrimination.
Emily Trant, chief impact officer at Wagestream, said: “Recent years have been catastrophic for people’s financial and mental health, and although inflation is on the decline, this data shows the fallout from the cost of living crisis is far from over. These concerning findings show it's in the interest of the employer to understand the symbiotic relationship between money and mental health, to open up the conversation about money, and introduce the appropriate financial wellbeing tools to support.”
Angelina David, clinical psychologist and facilitator at Plumm, added: “The findings of the 2024 State of financial wellbeing index indicate significant psychological distress linked to financial stress among Brits. These data points all underscore the need for targeted interventions, such as financial wellbeing coaching, to alleviate financial stress and enhance mental health.”
