In recognition of Mental Health Awareness Week, fintech business Smarterly have released researched today showing that two out of three individuals say that worrying about finances has a significant impact on their mental health.
The survey also revealed that 90% of employers agreed that financial worries had a negative impact on an employee’s mental health, while 87% also noted that financial concerns tend to have an adverse impact on an employees’ performance.
Commenting on the findings, Steve Watson, Head of Proposition, Smarterly, said: “Worries about finances can be all consuming – from concerns about how to cover the mortgage to simply having the funds to put food on the family’s plate. These concerns can take over all aspects of life and have a hugely detrimental effect on our mental health and wellbeing.
“Financial worries often come from a change in circumstances – whether that’s through illness, unemployment, reduced hours or family members who are currently unable to contribute financially. For those that can, fostering regular savings habits through a workplace savings scheme can help navigate any ups and downs and provide some reassurance that there is money there to fall back on in case the unexpected happens, the current Covid-19 crisis being a good example.”
The Smarterly research also found that 88% of employers feel it’s their responsibility to support their employee’s financial wellbeing. In order to help employees feel more in control of their financial situation, many employers are looking for innovative solutions to support their workforce, such as offering a workplace savings scheme to help their staff save for a home or manage credit card debt.
These initiatives play a vital part in minimising any financial worries their employees may have and therefore bettering their mental health. Through these schemes, employees are able to put money aside into a savings vehicle each month straight from their pay, while also allowing employers to contribute.
Watson further adds: “No matter what their age, how much they earn or what their priorities are, employers should help their employees with their financial wellbeing and encourage healthy savings habits via the workplace. Ultimately it boils down to education, tools and choice. This is key to ensuring that employees are able to make informed decisions about their finances and what is best for them.
“In today’s climate, with mental health elevating high on every corporate agenda, helping employees with effective financial wellbeing should come as standard. Empowering employees in this way is hugely beneficial to the business while mitigating potential mental health issues. Taking away money worries leaves employees feeling much more satisfied and motivated in their job, and far more productive and loyal as a result. It’s a win-win for everyone.”
Smarterly is an online savings and investments platform provider, offering workplace ISAs through payroll deduction. Smarterly aims to turn the UK into a nation of savers and investors by promoting the benefits of healthy savings habits via the workplace. Employers use Smarterly workplace savings to enhance the financial wellbeing of their workforce by providing them with an accessible way to save and invest from as little as £10 per month, direct from pay. Employers can contribute to support the varied financial needs of employees.
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