‘Older employees less likely to talk about financial wellbeing’

Almost three-quarters of employees say the cost-of-living crisis has made them feel more anxious about their finances but only 56% of employers think their employees are worried about their financial wellbeing, with older employees being less likely to talk about their financial concerns.

The results are part of an annual study by Aviva, the Aviva Working Lives Report 2024: Working for the Future, based on 1,011 employees and 201 private sector employers. Aviva says the mismatch between how many employees are worried about their finances and employer perceptions may be because people are not talking about it, with half of employees (50%) having not talked to their current employer or line manager about their financial wellbeing.

Nevertheless, more than three-quarters of employers say they 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 has improved from 34% last year, says Aviva.

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, says Aviva, 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.

Emma Douglas, Director of Workplace Savings & Retirement, says: “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).”

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