The majority of UK employees are anxious about dealing with their finances – with younger workers particularly adversely affected by the cost of living crisis, according to Aviva research.
The insurer surveyed 2,000 UK employees conducted before further economic upheaval triggered by the mini Budget in September.
Even so, around four in five employees said they were concerned about the recent increases to the cost of living, while a third reported they were just getting by financially.
Two thirds said managing their own finances had become more difficult in recent months and half said their current financial situation was affecting their mental health.
Young adults hardest hit
Overall, more than half (54%) of UK employees feel anxious when dealing with their finances – Millennials (73%) and Generation Z (69%) were most anxious, compared with 49% of Generation X and 36% of Baby Boomers.
The research also showed 59% of all Generation Z and Millennial employees avoided looking at their finances because “they are often out of my control”. This contrasts with just 10% of Generation X and 7% of Baby Boomers who said the same.
Of employees working at the UK’s largest business, the same percentage of workers reported feeling very anxious every day (27%) compared with last year’s data.
Almost half of all employed parents reported that their top concern was their children’s financial future and 71% were concerned that the impact of the cost of living crisis would disproportionately affect them for decades to come.
More than a third of employees felt current debt levels was detrimental to their wellbeing, with those on lower incomes (83%), Generation Z (65%) and people living with a disability (63%) more likely to be adversely affected.
Half of employees felt that sorting out their finances was stressful; 54% of people chose to hide the state of their wellbeing from their employer as they do not want it to negatively impact their career and a third said being in debt was ‘part of life’.
However, 62% of employees said they wanted their employers to have a greater understanding of their personal circumstances and one in five said it was very important that their employer understood how their mental and physical wellbeing can affect their work.
Aviva director of workplace savings and retirement Emma Douglas (pictured) said: “It is a difficult time for many, with some demographics feeling the cost-of-living crisis more acutely than others.
“Our research has shown that younger workers are most likely to be avoiding engaging with their finances due to feelings of anxiety and a lack of financial resilience. However, despite it being a daunting prospect, engaging now is the best course of action.
“As most people’s primary source of income, the workplace is a key environment to support an employee’s financial journey and employers can often be looked to as a trusted source of guidance on financial matters.
“At the same time, it’s abundantly clear that businesses and individuals are under considerable pressure in the current climate.”