4 Feb 2019
The Close Brothers' Financial Wellbeing Index assesses the financial wellbeing of UK employees and found the average score was a worrying 53.6 out of 100.
5,000 employees and 1,000 employers were asked about budgeting and planning, debt, protection, savings and investments, retirement planning, properties and mortgages, and tax. The areas causing respondents most concern included protection (42.5), budgeting and planning (48.8), and tax (48.5).
According to the research, 34% of people are unprepared for unexpected financial costs or a loss of income and 55% of employees do not have any kind of financial plan. In terms of tax allowances and reliefs, 76% of employees either don't know what's available to them or have some awareness but are not taking full advantage of any tax breaks.
The news around debt was better – 42% said debt is not an issue for them and 59% said they would know where to go for advice if it did become a problem. However, debt is a significant issue for 12% of those questioned.
Looking at financial wellbeing in more detail, the survey revealed that 97% of millennials and 72% of 35 to 54-year-olds worry about money while at work. Among those aged 55 years and over, that figure drops to 47%, which is still nearly half of this cohort.
UK businesses are being impacted by poor employee financial wellbeing. This is manifesting itself through reduced productivity (22%); loss of talent (22%); higher short-term and long-term absences (both 19%); fewer retirees (17%); and higher healthcare costs (13%).
Companies are recognising this issue and taking steps to tackle it – 45% of employers currently provide financial wellbeing strategies.
Financial wellbeing is not only good for employees, it can benefit businesses too. By removing the distraction of money worries among staff, it can deliver enhanced performance and productivity.
If you would like to know more about how to improve employee wellbeing and boost your recruitment strategy in the process, get in touch with the team at Stopgap today.
97 %of millennials worry about money while at work