Jessica BirdThe ‘Aviva Working Lives Report 2024: Working for the Future’ found that almost three-quarters (73%) of employees said the cost-of-living crisis has made them feel more anxious about their finances.
However, only 56% of employers thought their employees were worried about their financial wellbeing.
This might be because people are not talking about it, with 50% of employees having not talked to their current employer or line manager about their financial wellbeing.
This was the third consecutive annual in-depth investigation into employer and employee attitudes to the workplace, finances, wellbeing, and planning for retirement.
More than three-quarters (76%) of employers were found to have initiatives in place to encourage employees to talk to their managers about financial concerns.
While more than one in five employers (21%) do not actively encourage employees to talk about their financial concerns, this improved from 34% last year.
One in five employees (20%) said they chose not to think about their finances, engaging in ‘financial avoidance’.
Almost half of employees (49%) talk to friends or family to help cope with feelings of anxiety about their finances, but only 6% talk to colleagues or a manager, and 6% talk to a financial adviser; 14% did not have any coping mechanisms.
Emma Douglas, director of workplace savings and retirement at Aviva, 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).”
