Analysis of data over five years shows financial stress is still rising, and employees are paying the price
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Analysis by LCP of five years of data has highlighted a concerning rise in financial insecurity and stress among UK employees.
The most recent figures show that 53% of employees say they do not feel in control of their financial future - up from 47% in 2020. The findings, drawn from over 50,000 employee responses and 2,000 employers over five years, highlight the urgent need for more inclusive and strategic financial wellbeing support in the workplace.
The report shows that financial stress remains elevated post-pandemic, with 74% of employees reporting stress in 2024, 7% higher than pre-Covid levels. Financial worries are impacting productivity, with 41% of employees saying money concerns affect their ability to perform at work.
LCP is urging employers to take practical steps to support employees, including tailoring financial support by life stage to capture financial needs accurately, training managers to spot signs of financial stress, and delivering financial education through accessible formats such as webinars, apps, and interactive tools.
Other key findings for HR and benefits leaders from the analysis include:
- Demographic disparities: Renters, neurodiverse individuals, and those with mental health conditions report significantly lower financial confidence, underscoring the need for tailored support.
- Savings vulnerability: There’s been a 4% rise in employees whose savings would last less than one month, while those with savings exceeding 12 months dropped by 9%.
- Retirement readiness: While 60% expect workplace pensions to be their main retirement income, many also anticipate relying on personal savings, property, and part-time work.
- Education matters: Financial education is increasingly valued, rising from 46% to 57% since 2020.
- Communication evolution: Email is now the preferred channel for workplace financial communication (33% in 2024, up from 11% in 2020), while reliance on 1:1 conversations has dropped sharply.
- Manager impact: 66% of employees feel comfortable discussing personal issues with their manager, highlighting the importance of equipping line managers with financial wellbeing resources.
Financial wellbeing is no longer a ‘nice to have’- it’s a business imperative. Our analysis shows that worrying about finances has been brought to the forefront over the last five years as people have faced Covid and then a cost-of-living crisis. This is impacting productivity, which is affecting both individual companies and the wider UK economy.
Financial confidence and capability are a key part of reducing employee stress and anxiety. Employers must take a proactive, inclusive approach that reflects the diverse needs of their workforce.
Heidi Allan Head of Financial Wellbeing at LCP
