One in five workers experience financial avoidance

New research by Aviva has found that almost three-quarters of employees (73%) said the cost-of-living crisis has made them feel more anxious about their finances.

The analysis also found that 56% of employers think their employees are worried about their financial wellbeing. This might 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.

Aviva says it is encouraging that employers are taking action to support their people with more than three-quarters (76%) with 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.

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, 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.

Younger people are more likely to talk about their financial concerns, whereas older people are more likely to not have any coping mechanisms.

Emma Douglas, Director of Workplace Savings & 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.

“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.”

Do not have mechanisms to cope with feelings of anxiety about finances
% of employees	Age
3%	16–24
10%	25–34
13%	35–44
17%	45–54
24%	55+

 

Spoken to their employer or line manager about their financial wellbeing
% of employees	Age
77%	16–24
62%	25–34
51%	35–44
34%	45–54
33%	55+