How Finances Are Affecting Mental Health And Employee Wellbeing

How finances are affecting mental health and employee wellbeing

Money worries aren’t just about numbers in a bank account; they’re shaping how we sleep, how we feel, and even how we perform at work.

According to new research from our 2025 financial wellbeing survey, more than half of UK adults say their finances negatively affect their mental health. For more than 1 in 3 people, it happens very often or all the time. The strain is particularly severe for younger generations and women, highlighting a growing challenge that can’t be ignored.

Who’s feeling the pressure the most?

The survey of 1,000 UK adults reveals stark differences across age, gender and region:

• Generation Z are 3x more likely than Baby Boomers to say money worries affect them constantly.
• Londoners and the North East report the highest strain, with over 1 in 5 in the North East feeling the impact all the time, and a third of Londoners struggling very often.
• Women and younger people are disproportionately affected, reporting higher levels of anxiety, shame and poor sleep linked to money concerns.

When asked how they feel about their finances, nearly half of Gen Z used the word anxious. Women were more likely than men to describe feeling ashamed. Almost half of women said money worries had disrupted their sleep.

This isn’t just an economic problem; it’s a financial wellbeing issue with ripple effects across relationships, health, and productivity at work.

Why financial wellbeing matters for employees

Stress and anxiety around money don’t stop at the office door or clock out at 5 pm. They affect productivity, engagement, and overall workplace culture.

Keerti Baker, Our Marketing Director, explains:

“The cost-of-living is no longer just an economic headline. It’s becoming a public health issue. Money touches everything: our self-worth, our relationships, and our stress levels, both in and out of work. If we want to build a healthier, more productive workforce, employers and policy makers need to treat the financial wellbeing of employees as a core part of emotional wellbeing.”

Breaking the stigma around money conversations

Our survey found that nearly half of Gen Z avoid seeking personal financial services because they feel embarrassed or don’t know where to start. Confidence is especially low among younger generations and women, leaving many people to struggle alone.

Employers can play a critical role in breaking down these barriers by:

• Offering financial education, coaching and tools through platforms like the Lifetime app or other Lifetime financial planning services.
• Creating a culture where conversations about money are normalised and stigma-free.
• Providing accessible, personalised support that empowers employees to take control of their finances and plan for the future, including later life financial planning.

Supporting financial wellbeing for everyone

Financial wellbeing is a key part of overall health and resilience. For individuals, taking steps early, whether exploring pension advice, accessing personal financial services, or using tools and resources, can help reduce stress and build long-term confidence.

For HR and business leaders, embedding financial wellbeing of employees into workplace strategies isn’t just a “nice to have.” Supporting staff with accessible guidance, education, and resources strengthens engagement, reduces stress, and fosters a healthier, more resilient workforce.

A glimpse into this insight is available here.

Written by Ione Morton, Marketing Executive at Lifetime