More than a quarter of employees believe financial problems are negatively impacting their life, according to new research from Willis Towers Watson.

The latest Financial Worries report from Willis Towers Watson’s Global Benefit Attitudes Survey reveals over a quarter (26%) of UK employees feel money worries are having a negative impact on their lives, up from a fifth (20%) in 2015.

Meanwhile the proportion who are satisfied with their financial situation decreased from 52% to 43% over the same period. Those with the most pressing money worries were also most likely to suffer from poorer health, and higher levels of stress and absenteeism, which can also lead to low engagement at work.

The decline in financial satisfaction reverses the trend of the previous six years and coincides with an upturn in unsecured household debt since 2013, alongside squeezed incomes.

More positively, employer research by Willis Towers Watson also revealed growing recognition of the issue among employers, with more than two thirds (69%) agreeing that they should take an active role in encouraging their employees to manage their personal finances better. Over half (56%) of employers claim they will have implemented financial well-being programmes for their employees in three years.

Willis Towers Watson senior consultant Richard Sweetman said: “After the relative optimism of 2015, 2017 has marked a return to the bad old days of low financial confidence. Rising indebtedness, low growth in wages, and global political uncertainty are likely to be contributing to this trend. With household debt rising and incomes stagnant, it is perhaps not surprising that growing numbers of UK workers are feeling the strain financially.

“What emerges from this research, however, is the extent to which this impacts negatively on employees’ health and engagement in the workplace. It also identifies growing awareness among employers of the link between financial worries and stress, absence and engagement at work. Employees are looking for help, and there is an increasing willingness on the part of employers to offer meaningful support with the financial wellbeing of their staff.”

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