50% of employees have not talked to their employer about their financial wellbeing

According to new research by Aviva, one in five employees (20%) choose not to think about their finances.

Aviva surveyed 1,011 full or part time employees aged 16+ in the private or charity sector (excluding sole traders) and 201 private sector employers (aged 18+), as part of the next instalment of their Working Lives Report.

The research reveals that:

• Almost three-quarters of employees (73%) said the cost-of-living crisis has made them feel more anxious about their finances.
• Just over half (56%) of employers think their employees are worried about their financial wellbeing.
• Half of employees surveyed (50%) say they have not talked to their current employer or line manager about their financial wellbeing.
• The younger generation are more likely to discuss their financial wellbeing with their employer or line manager. More than three quarters (77%) of 16-24-year-olds have done so compared to just over a third (34%) of those aged 45-54.
• More than one in five employers (21%) do not actively encourage employees to talk about their financial concerns.
• Almost half of employees (49%) talk to friends or family to help cope with feelings of anxiety about their finances, while only 6% talk to colleagues or a manager and 6% talk to a financial adviser.

Head in the sand

The Aviva Working Lives Report 2024: Working for the Future⁽¹⁾ is the third consecutive annual in-depth investigation into employer and employee attitudes to the workplace, finances, wellbeing, and planning for retirement.

The research suggests that many people are suffering from some level of financial avoidance with one in five employees (20%) choosing not to think about their finances. People experiencing financial avoidance might actively shy away from managing their finances, which might mean not paying bills or checking financial statements.

Almost half of employees (49%) talk to friends or family to help cope with feelings of anxiety about their finances, only 6% talk to colleagues or a manager and 6% talk to a financial adviser. However, 14% don’t have any coping mechanisms.

Younger people are more likely to talk about their financial concerns, whereas older people are more likely to not have any coping mechanisms.

Emma Douglas, Aviva’s Director of Workplace Savings & Retirement said: “Financial wellbeing is a critical part of a person’s welfare, and it might be a surprise to some that it is more about a person’s attitude to money and how they feel, rather than a number in their bank balance or pension fund.

“These attitudes can be based on a range of factors, including a person’s experience of handling money, their background, and their level of personal finance knowledge.

“If someone is anxious or stressed about money it’s likely to have a detrimental impact on their mental and physical health too. Employers are increasingly looking to offer information and a range of support services and tools designed to help improve the financial wellbeing of their people. But individuals’ needs vary hugely, so it’s important that services can be tailored to support these diverse needs: from help with bills and budgeting to retirement planning.

“People can take small steps to manage their financial wellbeing which might include tracking down lost pensions, making a plan for retirement, or checking whether their employer provides an Employee Assistance Programme (EAP).”

Some employers will be able to offer financial education either through a specialist provider or an Employee Assistance Programme (EAP). But if not, there are a number of 24/7 helplines and online resources at hand that can offer information about financial issues.

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