Financial wellbeing and resilience – a tool for personal and professional productivity
As financial stress rises across the UK workforce, financial wellbeing in the workplace is becoming critical for employee performance and retention.
There is a growing awareness among managers, organisations and individuals that financial health and wellbeing is strongly correlated with greater employee satisfaction, engagement and productivity at work.
This may be about to change as employers start to realise the negative effects on financial stress on workplace productivity, and as a number of high-profile reports emphasise the highly significant but often hidden impact of money worries on the performance, career designs and mental health of their staff.
the impact of financial stress on workplace performance
The Financial Fitness at Work report 2025 from Zellis on Workplace financial stress and productivity revealed a “silent workplace crisis” as employee financial stress surges. The research highlighted clear links to workplace performance and found:
- 92% of employees reported experiencing financial stress or worry in the past year
- 89% said that financial stress had negatively affected them at work.
- Nearly half said financial stress made it harder to focus or concentrate at work.
- More than 1 in 4 acknowledged it made them less productive.
Morgan Stanley’s State of the Workplace Financial Benefits Study 2025 also drew links between financial stress and productivity, with 66% of employees saying financial stress negatively affects their work and personal life and 83% of HR leaders saying personal financial issues are damaging employee productivity.
As a result, employers are increasingly looking to provide benefits that include financial planning tools, career and retirement support, and financial education, in order to support employees and reduce stress and support retention, satisfaction, and productivity.
How financial wellbeing improves productivity and retention at work
A report by Octopus Energy: The wellbeing benefits insights gap says offering financial literacy and planning help can be a highly effective way for an organisation to support social mobility and inclusivity, engage its workforce, and contribute to the company’s wider goals. It argues that not only can this contribute greatly to your organisation’s ESG (Environmental, Social and Governance) commitments, it can also improve engagement and retention because financially settled employees are less likely to be looking for another job for salary reasons.
Financial literacy and resilience support can also be important for attracting talent. In today’s talent market not providing the right support can cost an organisation access to top candidates.
It is also important for individual productivity. A recent CIPD report found that money worries negatively affect the work performance of 31% of employees, with 19% reporting lost sleep over money, 15% reporting health problems, such as stress and 13% saying money worries made it harder to concentrate or make decisions at work (CIPD 2025).
Key benefits of financial wellbeing programmes:
- Reduced employee stress and absenteeism
- Improved focus and productivity
- Higher retention rates
- Stronger employer brand and talent attraction
Growing awareness indicates that employee financial health is strongly correlated with increased satisfaction, engagement, and productivity at work. To support this, many employers are now offering financial planning tools and education to boost retention and well-being.
Women, Wealth and Financial Wellbeing in the Workplace
Another growing issue is the link between women’s career satisfaction and their growing economic power. As recent commentary from AllBright suggests, over the next decade, women are expected to control a significantly larger share of global wealth, driven by inheritance, entrepreneurship, career progression and changing family structures.
The latest Women in the Workplace report from McKinsey and LeanIn.Org found women face less career support and fewer opportunities to advance as companies show declining commitment to women’s progress. While women are as dedicated to their careers as men, there is a gap in their desire for promotion, and women at both entry level and senior levels of the talent pipeline are still held back by less sponsorship and manager advocacy, which also means they earn less than their male colleagues over their career lifetime.
How to Build Financial Resilience: Practical Steps for Employees
Pensions savings is something that young employees and graduates often neglect to prioritise when they are starting their first job. Yet employee and employer contributions towards pensions in the early years of your career can mean planning for retirement is much more affordable than starting to save in your forties or fifties.
“Planning how to pay for retirement is one of the biggest financial decisions people make. It is important individuals understand all the options available, make informed decisions and avoid making expensive mistakes with their hard-earned savings,” says Jonathan Watts-Lay, Director, WEALTH at work, a leading financial wellbeing, retirement and workplace savings specialist.
He suggests that employees of all ages start to think about how they can start saving as soon as they start work, but as your career progresses you should be taking regular reviews to ensure your planning is on track.
- Work out costs in retirement
- Track down all pensions
- Calculate all sources of retirement income
- Check state pension entitlement
- Consider how to access pension income
“When it comes to retiring, it is crucial to work out how much money a person will need in retirement to meet day-to-day living expenses such as household bills as well as discretionary expenditures including holidays and hobbies,” says Watts-Lay.
According to the Pensions UK, estimated annual spending in retirement for a single person will be about £13,400 a year if they have a minimum standard of living (this would cover all a retiree’s needs plus enough for some leisure activities such as a week’s holiday in the UK and eating out occasionally); £31,700 a year for a moderate standard of living (one foreign holiday a year and more frequent eating out); and £43,900 a year for a comfortable standard of living (this would cover all a retiree’s needs plus two foreign holidays a year and some luxuries such as regular beauty treatments). For couples, it’s £21,600, £43,900 and £60,600, respectively.
At least 3.3 million pension pots are considered to be ‘lost’ or forgotten, with each pot being worth an average of £9,500. Whilst auto-enrolment has successfully increased pension participation, it has also led to people accumulating multiple small pension pots as they move between jobs. In fact, there are now 13 million of these small pots, worth £1,000 or less, with the number increasing by around one million a year. This is making managing retirement savings more complex.
Many people assume their pension will be their only source of income in retirement but that may not be the case. Other assets, such as ISAs, personal savings accounts and other investments can all contribute to financial security later in life.
Some people may not realise they need at least 35 qualifying years of National Insurance (NI) contributions to receive the full new State Pension. Those who have gaps in their NI record can still boost their pension by buying voluntary NI credits.
It’s important for people to think about how they plan to take their pension savings to generate an income in retirement and to work out how much pension savings would be needed to generate a gross income that will meet the required spending needs in retirement. People who are single may need a larger retirement pot compared to those in a couple. If someone is worried that they haven’t saved enough, it may be worth delaying retirement or continue working part-time.
Many employers now offer retirement support including financial education, guidance and investment advice, as well as access to a pension consolidation service,” says Watts-Lay. It is always worth speaking to your workplace to find out what help is available.”
Overseas pensions – the importance of taking advice
For many families and individuals who have worked outside the country of their birth or main residence for some or many years, the issue of pension provision, entitlement and tax is a particularly thorny issue.
From 6th April 2026, British expats will face a 407% rise in the cost of topping up their State Pension, following changes announced in the Autumn Budget. International health insurance specialists at William Russell say expats need to familarise themselves with upcoming changes to claiming their state pension while overseas. These include a sharp rise in voluntary National Insurance contributions and longer eligibility requirement including a new 10-year minimum UK residence or National Insurance contribution requirement (up from the current rule of three years).
William Cooper, Marketing Director at William Russell, said: “Taking action now could save hundreds or even thousands of pounds and protect entitlement to future State Pension increases. After April, the same top-ups will cost significantly more, and some people may no longer be eligible at all.”
Frequently Asked Questions
What is financial wellbeing?
Financial wellbeing refers to an individual’s ability to manage their finances confidently, meet current obligations, and feel secure about their financial future.
Why is financial wellbeing important in the workplace?
Financial wellbeing is important because it supports employee mental health, improves job satisfaction and helps create a more engaged and productive workforce. Employers that offer financial wellbeing support are also more likely to attract and retain talent.
How can employers support financial wellbeing?
Employers can support financial wellbeing by offering clear financial education, providing access to tools and resources, promoting pension awareness, and embedding financial wellbeing into their wider employee benefits strategy.
What is financial resilience and why does it matter?
Financial resilience refers to an individual’s ability to withstand financial shocks, such as unexpected expenses or changes in income. It matters because financially resilient employees are less likely to experience stress and are better able to focus and perform effectively at work.
