Financial Anxiety
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Anxiety Generates Financial Avoidance Among Younger Workers

More people are feeling generally anxious day-to-day, causing them to neglect their finances; the latest Aviva research suggests. 

According to the insurance company’s Age of Ambiguity study, which was published this week, 54 per cent of the UK’s workforce feels anxious when dealing with personal finances.

Of the UK’s largest companies, those with 1,000-plus employees, 27 per cent admitted to regularly feeling ‘very anxious’ throughout the day; a  five per cent increase on the company’s 2020 statistics.

Millennials reported feeling the most anxious about money at 73 per cent, followed by Gen Z at 69 per cent.

The study suggests that this persistent level of anxiety is fuelling financial neglect; with many of the younger respondents to the study feeling like their financial position is beyond their own personal control.

Of particular interest was the study’s view on generational anxiety.

Whereas many of the younger respondents felt anxious about their own finances, the more experienced respondents, many of whom will remember the double-digit inflation of the 1980s, were more worried about the future of their children’s finances.

Forty-nine per cent of working parents in the UK say their top concern is their children’s financial future, and as such, the study recognises the ‘bank of mum and dad’ as a powerful financial resource.

One in four grandparents have or are going to help their grandchildren buy their first home; giving £31,399 on average.

Emma Douglas, Aviva’s Director of Workplace Savings & Retirement
Emma Douglas, director of workplace savings and retirement, Aviva

Emma Douglas, the company’s director of workplace savings and retirement, encourages people to realise that engaging with finances will provide insight that can help alleviate problems occurring in the future.

“Understandable though it may be for us all to be looking for ways to avoid facing harsh financial realities right now, ignoring our financial situation altogether isn’t going to help,” she explains.

The study highlights the importance of the workplace as an arena for sharing financial advice and guidance to help different age groups navigate money matters.

“As most people’s primary source of income, the workplace is a key environment to support an employee’s financial journey,” continues Douglas.

“Employers can often be looked to as a trusted source of guidance on financial matters.

“It’s vital we find ways to share learnings and collaborate across the business community to make tools and support more widely available to UK employees,” she concludes.

Author

  • Tyler is a fintech journalist with specific interests in online banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.

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