60% of UK employees report their financial situation is damaging their health, leading to stress, anxiety and, in a small percentage, suicidal thoughts.
That’s according to nudge’s 2025 Global Financial Wellbeing Report, which reveals money worries are systematically undermining the mental, physical and social wellbeing of the UK workforce.
The annual report, which surveyed over 11,500 employees worldwide including 2,102 UK workers, highlights the widespread health consequences of financial instability while also highlighting the positive outcomes strong financial literacy can have on workforce wellbeing and overall health.
Ongoing financial pressure appears to be contributing to mental and physical health issues in the UK. The report revealed that UK employees experience the following mental health issues due to their financial situation:
- Stress (31%)
- Anxiety (26%)
- Suicidal thoughts (6%)
The effects of financial stress aren’t just limited to the mind; they’re appearing in employees’ physical health too. The data shows that 22% of UK employees lose sleep over financial concerns, 16% report fatigue or exhaustion and 15% experience headaches or migraines. Additionally, 9% link their financial stress to high blood pressure.
The impact also extends into personal lives, with 18% saying financial stress has caused tension in their relationships, and 12% reporting social withdrawal.
Commenting on these findings, Jonathan Bellamy, Benefits Manager at AstraZeneca said: “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. Ultimately, it could also lead to longer-term mental health issues, so it is important employers provide support for employees to better understand finances and educate them on the financial benefits they have within their total reward packages.”
Tim Perkins, Co-Founder and CEO at nudge said: “Financial pressure is particularly prominent in the UK compared to other European countries when it comes to mental health issues.”
Across other major European countries, financial stress affects a smaller percentage of workers versus the UK: France (23%), Germany (25%), Spain (25%) and Italy (22%).
“While other European employees report worrying signs of financial stress, the UK’s significantly higher rate of 31% is concerning,” added Perkins. “This financial pressure doesn’t just impact balance sheets – it reverberates through every aspect of wellbeing both at work and home. By providing personalised financial education, employers can address this specific challenge and create workplaces where employees can thrive rather than just survive.”
As financial pressures intensify, UK employees are increasingly aware of the need to strengthen their financial knowledge – with almost 80% actively working to improve their financial literacy. Data shows that those with strong financial literacy are 37% less likely to experience stress and 49% less likely to feel anxious.
This positive impact extends across all areas of wellbeing, with those who are financially literate significantly more likely to report stronger mental, social, and physical health globally:
- 7x more likely to rate their mental health as excellent
- 7x more likely to rate their social health as excellent
- 6x more likely to rate their physical health as excellent
Perkins concluded: “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. 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.”
Photo by Priscilla Du Preez 🇨🇦 on Unsplash
