Financial wellbeing statistics: UK 2022

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Everyone has a different relationship with money. But what does the data say? In this article, let’s take a look at financial wellbeing statistics to understand how people really feel about their cash and how it can affect their wellbeing.

Financial wellbeing doesn’t necessarily mean having a lot of money, or a nice car or a big house. It means feeling content, comfortable and secure with your financial situation, and feeling able to live the life you want to live.

When you do not feel this way about your money, you are at risk of poor financial wellbeing, which can lead to anxiety, stress and depression.

With living costs soaring, financial wellbeing will be top of mind for many people right now. To help you understand these effects, we’ve compiled the most recent financial wellbeing statistics in the UK.

The knock-on effects of poor financial wellbeing also pose serious challenges for organisations, as poor financial wellbeing has been linked to both reduced employee health and impaired employee performance. Therefore, we’re also going to look at employee financial wellbeing statistics.
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Financial wellbeing statistics

Firstly, let’s look at financial wellbeing statistics that comprise the entire UK population.

The research below really highlights the scale of the issue. In the UK alone:

Research also reveals the strong link between financial wellbeing and mental health. The statistics show that:

  • Half of people in problem debt have a mental health problem (Money and Mental Health)
  • Almost 40% of people with a mental health problem say their financial situation worsens their mental health problems (Money and Mental Health)

Financial wellbeing affects everyone, regardless of whether they have stable income or not. With that in mind, read the next section to discover the financial wellbeing of employees in the UK.

Employee financial wellbeing statistics

This year, the experts at Champion Health revealed the impact of financial wellbeing on UK employees in the Workplace Health Report: 2022.

We set out to discover the health challenges faced by the UK’s workforce, from financial wellbeing to MSK health, to sleep quality and beyond.

As part of this, we analysed the anonymous data of over 2,000 employees, across a range of demographics and sectors.

The result was a comprehensive range of employee wellbeing statistics, which included four key findings concerning financial wellbeing. Our financial wellbeing statistics discovered that:

  1. 30% of employees cite financial pressure as a cause of stress outside of work
  2. 37% of employees experiencing poor financial wellbeing are aged 25-34
  3. 29% of employees experiencing poor financial wellbeing are having their sleep affected by money worries
  4. Financial wellbeing is impacting performance in work

Read on to explore these findings in more detail.

1. Financial pressure is a top cause of stress

Champion’s data found that financial wellbeing is a significant issue facing our organisations, with 30% of employees citing financial pressure as a cause of stress outside of work.

Financial pressure outranks COVID-19 and parenting as a main cause of stress outside the workplace and is second only to relationships. Lower down the list are caring responsibilities and ill health, which affect 10% of people, and bereavement, which is a stressor for 8% of people.

Image showing the causes of employee stress outside the workplace

Clearly financial wellbeing is a significant stressor for many employees, a finding which takes on greater significance when placed alongside data on employee stress.

Champion’s research revealed that 67% of employees are experiencing moderate to high levels of stress, which highlights the need for organisations to reduce employee stress.

This data shows that organisations must address financial wellbeing when managing and reducing employee stress.

2. Younger employees are struggling with financial wellbeing

Champion’s financial wellbeing data suggests that younger employees are disproportionately affected by poor financial wellbeing. Of those employees experiencing poor financial wellbeing, 37% are aged between 25 and 34.

Employees aged between 35 and 44 were the next most affected group, making up 28% of those experiencing poor financial wellbeing.

Employees between the ages of 45 and 54 only made up 17% of the sample, and employees aged between 16 and 24 only 12%.

an image showing the financial wellbeing statistics of different age grouos

3. Financial wellbeing is impacting your employees’ sleep

Champion’s research also highlighted how concerns surrounding financial wellbeing can impact other areas of wellbeing.

As shown above, poor financial wellbeing contributes significantly to increased levels of employee stress. Alongside this, Champion’s data also revealed how worries surrounding finances are diminishing your employees’ sleep quality.

Of the 30% of employees reporting that financial wellbeing was causing increased stress, 29% reported that this stress was affecting their sleep.

4. Financial wellbeing is impacting performance at work

The effects of poor financial wellbeing filter into professional performance, as well as personal wellbeing.

Research by CIPD found that poor financial wellbeing contributes to increased rates of absenteeism and presenteeism.

Financial pressure can lead to absenteeism in various ways. These can include anything from short-term absences to manage finances, to long-term absences to recover from more serious health issues such as emotional exhaustion and stress-related illness.

Champion’s research also revealed the link between poor financial wellbeing and reduced productivity. As alluded to above, financial pressure can diminish mental wellbeing and sleep quality, and Champion’s data revealed that both are linked to work performance. That is, both better mental wellbeing and higher sleep quality were associated with higher levels of productivity.

Employees who are tired, or in a bad place mentally, will not perform to their best. On the flip side, those employees who are thriving personally will also thrive professionally,” adds Jack Green, Head of Performance at Champion Health.

What these financial wellbeing statistics mean for organisations

The research paints a clear picture: financial wellbeing is on the decline and millions of people are being affected.

These effects have permeated into our workplaces, with 30% of employees citing financial wellbeing as a source of stress. It’s therefore imperative that that organisations ease this pressure.

There are many ways that leaders can do this, including:

  • Normalising the conversation around financial wellbeing
  • Promoting internal financial wellbeing offerings
  • Signposting towards external financial wellbeing support services

Learn more about supporting your employees with their financial wellbeing in this article: Financial Wellbeing at Work | How to Support Your Employees.

Download The Workplace Health Report

Other content Karsten has contributed to:

12 Minutes of Workplace Health Podcast Episode #21

Boosting your wellbeing with nature

Eating Disorders in the Workplace

Other content Joe Pindar has contributed to:

12 Minutes of Workplace Health Podcast Episode #21

Boosting your wellbeing with nature

Eating Disorders in the Workplace