One in five workers experience financial avoidance

News
Joanne Swann
Hands opening a zippered wallet filled with cards, meticulously managing finances.

The Aviva Working Lives Report 2024: Working for the Future is the third consecutive annual in-depth investigation into employer and employee attitudes to the workplace, finances, wellbeing, and planning for retirement.

The new research found that almost three-quarters of employees (73%) said the cost-of-living crisis has made them feel more anxious about their finances. However, only 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.

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.

Table 1: 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+

 

Table 2: Spoken to their employer or line manager about their financial wellbeing (5)
% of employees Age
77% 16-24
62% 25-34
51% 35-44
34% 45-54
33% 55+

 

Emma Douglas, Director of Workplace Savings & Retirement said:

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.

Emma Douglas, Director of Workplace Savings & Retirement  

Some employers will be able to offer financial education either through a specialist provider or an Employee Assistance Programme (EAP). But if not, there are a number of 24/7 helplines and online resources at hand that can offer information about financial issues.

Aviva recently launched its ‘Find and Combine’ pension tracing service. It also provides a range of online retirement tools and calculators.

There is also supplementary help available through Pension Tracing Service, Money and Pension Service, MoneyHelper, and Pension Wise.

Joanne Swann, Content Manager, WorkWellPro
Editor at Workplace Wellbeing Professional | Website |  + posts

Joanne is the editor for Workplace Wellbeing Professional and has a keen interest in promoting the safety and wellbeing of the global workforce. After earning a bachelor's degree in English literature and media studies, she taught English in China and Vietnam for two years. Before joining Work Well Pro, Joanne worked as a marketing coordinator for luxury property, where her responsibilities included blog writing, photography, and video creation.

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