Money worries hindering employees' concentration at work
With over a quarter (27%) of UK employees describing themselves as 'at the tipping point' financially, it is of little surprise that one in eight (13%) are finding that their money worries are hindering their concentration.
The figures, released from a study by the Social Market Foundation (SMF), and financial benefits provider Neyber, reveal that financial wellness and money management are significant causes of stress to the UK workforce.
Worryingly, 40% of employees cite money concerns as a source of stress to them over the past year, with a quarter (25%) saying such worries have caused them to lose sleep. However, nearly a half (48%) are still unable to save for more than their monthly bills.
With pensions savings affecting the whole workforce now more than ever due to the flexibilities on offer at retirement, employers are being widely encouraged to at the very least signpost their employees to appropriate financial education and support – not just in pensions, but across all their savings.
Katie Evans, SMF economist, says: “The UK’s workforce lacks financial resilience. It’s clearly affecting our ability to concentrate at work and blunting our productivity. These money worries have a clear impact on how people feel and behave as they go about their day-to-day lives and jobs.
“Employers need to help their staff to learn healthy financial behaviours and build financial resilience. As poor financial resilience affects all income groups, the answer isn’t just higher levels of pay.
“Workplace pensions have already been introduced to build financial resilience later in life. Firms could also consider simple changes, like printing a recommended monthly savings goals on payslips or offering budgeting applications alongside online payroll to help improve the financial capability of their teams”.
WEALTH at work is blogging about the key areas of employer consideration when helping their employees through retirement in Reward's financial education hub.
The hub examines all the changes in pensions and looking at how you can help your employees with financial education across all their savings. CLICK HERE to access the hub
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