Only half of UK companies have a financial wellbeing strategy, according to Close Brothers Asset Management.
In a report titled ‘Spotlight on UK financial wellbeing’, the firm found money worries among UK employees had increased to 36 per cent.
Although the Close Brothers financial wellbeing index showed an improvement, there were still three areas where it highlighted an increase in vulnerability across savings, investments and retirement planning.
Some 55 per cent of employees have an emergency fund set aside to cover monthly costs, a drop from 70 per cent in 2019 indicating these funds have been used up and not yet replenished.
The report also found many employees were uncertain about retirement with 18 per cent deferring while 36 per cent of those aged over 55 have changed the day they retire.
These concerns are impacting employees' mental health with 87 per cent admitting money worries are affecting their work.
Jeanette Makings, head of workplace financial wellbeing, said: “Our research has illustrated, money worries don’t only affect individuals, they also impact business health as they are a significant drain on productivity.
“In failing to devote attention and resources to support financial wellbeing and their role in wider wellbeing strategies, the best-laid wellbeing plans may be rendered much less effective.”
It comes after Lee Robertson, chief executive of Octo Members group, said mental health struggles were ‘more widespread in the sector than we think’.
Speaking to FT Adviser, Robertson suggested wellbeing elements needed to be integrated into day-to-day practices within teams.
He said: “You have team meetings where it’s all about what we’re doing for clients and what the next compliance issue is we need to be dealing with.
“It would be great if we could build wellbeing elements into those meetings. To get colleagues to seriously talk to each other about how they are doing. That would be my big hope for this industry.”
alina.khan@ft.com
