One in five employees are choosing not to think about their finances which might mean they are avoiding paying bills or checking financial statements.
The Aviva Working Lives Report 2024 found 73 per cent of employees said the cost-of-living crisis was making them feel more anxious.
In its third year, the report looks into employer and employee attitudes to the workplace, finances, wellbeing, and planning for retirement.
Although cost of living pressures were making more employees feel anxious, only 56 per cent of employers thought their employees were worried about their financial wellbeing.
According to Aviva, this may be because people aren't talking about it, with half of employees having not spoken to their current employer or line manager about their financial wellbeing.
Emma Douglas, director of workplace savings and 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.”
The report found employers were taking action to support people when it comes to money worries, with 76 per cent having initiatives in place to encourage employees to talk to their managers about financial concerns.
According to the data, younger people were more likely to talk about their financial concerns with 77 per cent of 16-24 year olds having spoken to their employer or line manager, compared to just 34 per cent of those aged 45-54.
Older people were also more likely to not have mechanisms in place to cope with feelings of anxiety about finances compared to younger people.
Douglas added: “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.”
alina.khan@ft.com
