A worrying six in 10 UK employees say their health is being severely damaged by financial stress, findings from a new study suggest.
The UK now faces Europe’s most significant financial wellbeing challenge, with widespread anxiety, insomnia, relationship tensions and even suicidal thoughts directly linked to money worries among workers, the report, from financial education provider nudge, says.
Its 2025 Global Financial Wellbeing Report surveyed over 11,500 employees globally, including more than 2,100 UK respondents, and revealed severe impacts on mental health due to financial instability:
- 31% of employees report experiencing stress related to money.
- 26% suffer from anxiety.
- 6% have had suicidal thoughts tied explicitly to financial concerns.
Physical and Social Impacts
Financial worries aren’t limited to mental health issues as they are significantly impacting employees’ physical wellbeing, the research found:
- 22% lose sleep due to financial concerns.
- 16% experience chronic fatigue or exhaustion.
- 15% suffer from headaches or migraines.
- 9% link their financial situation to high blood pressure.
And financial distress is negatively affecting people’s social lives, with 18% reporting strained personal relationships and 12% experiencing social withdrawal.
Employers Must Take Action
Jonathan Bellamy, benefits manager at pharmaceutical giant AstraZeneca, said the direct connection in the research between financial stress and workplace performance was concerning.
“Financial stress has a huge impact on people both inside and outside of work. If someone is stressed by their finances, it can cause a lack of focus and decreased productivity,” he said.
Bellamy added that “[u]ltimately, it could also lead to longer-term mental health issues, so it’s important employers provide support for employees to better understand finances and educate them on the financial benefits they have within their total reward packages.”
UK Worst Affected in Europe
The UK is the most severely impacted country in Europe by financial stress. While 31% of UK employees report significant financial-related mental health struggles, other major European countries have considerably lower rates:
- France (23%)
- Germany (25%)
- Spain (25%)
- Italy (22%)
Tim Perkins, co-gounder and CEO of nudge, noted that financial pressure was “particularly prominent in the UK” and a reason for concern.
“This financial pressure doesn’t just impact balance sheets. It reverberates through every aspect of wellbeing, both at work and home,” he said. “By providing personalised financial education, employers can address this specific challenge and create workplaces where employees can thrive rather than just survive.”
Financial Education: A Powerful Solution
The report offers a clear path forward: improving financial literacy. Employees who develop stronger financial knowledge show markedly better mental and physical health outcomes. Financially literate employees globally are, according to the research:
- 7 times more likely to report excellent mental health.
- 7 times more likely to report excellent social health.
- 6 times more likely to report excellent physical health.
Nearly 80% of UK workers are actively attempting to boost their financial literacy, and that shows a strong desire for employer-supported financial education programmes, says the report.
“Financial literacy is a powerful way to reduce financial stress during volatile times, although it’s important to note that advice should be coming from experts rather than unregulated platforms,” said Perkins.
“By equipping employees with expert advice on how to better manage their finances, employers will ease the pressure on employees’ minds, bodies and relationships. Businesses must recognise the importance of offering personalised financial education to create a healthier workforce.”