More than half (59%) of employees admitted their mental and physical health have been negatively impacted as a result of their financial behaviours or situation, according to new data from Nudge.
Its 2025 Global financial wellbeing report was based on a survey of more than 11,500 employees globally, including 2,102 from the UK.
It found that UK employees experience the following mental health issues due to their financial situation: stress (31%), anxiety (26%), and suicidal thoughts (6%).
Almost a quarter (22%) have lost sleep over financial concerns, 16% reported fatigue or exhaustion and 15% experienced headaches or migraines. Additionally, 9% link their financial stress to high blood pressure, 18% said financial stress has caused tension in their relationships, and 12% reported social withdrawal.
Almost 80% said they are actively working to improve their financial literacy, as those with strong financial literacy are 37% less likely to experience stress and 49% less likely to feel anxious.
Furthermore, those who are financially literate are significantly more likely to report stronger mental, social, and physical health globally. They are seven times more likely to rate their mental health as excellent and rate their social health as excellent, as well as six times more likely to rate their physical health as excellent.
Tim Perkins, co-founder and chief executive officer at Nudge, said: “Financial stress doesn’t just affect people’s bank accounts, it impacts their entire wellbeing, both inside and outside of work. When employees are stressed about money, it affects their focus, productivity, and can lead to serious long-term mental health issues. That’s why it’s crucial for employers to provide comprehensive support that helps employees better understand their finances and the financial benefits available to them through their workplace.
“Financial literacy is a powerful way to reduce financial stress during volatile times, although it’s important to note that advice should be coming from experts rather than unregulated platforms. By equipping employees with expert advice on how to better manage their finances, employers will ease the pressure on employees’ minds, bodies and relationships. Employers must recognise the importance of offering personalised financial education to create a healthier workforce.”
