Member Article

Employers urged to support employees with shifting financial concerns as UK emerges from lockdown

New data from nudge shows everyday finances, budgeting and saving remain biggest focusses with more than 40% of employee engagement on these topics Online scams and divorce & separation are the fastest growing areas of interest, as lockdown takes toll on our mental and financial wellbeing

22 July 2020, London: With average UK wages falling for the first time since 2014 according to the ONS, personal finance platform nudge is urging employers to support their workforces with their financial wellbeing, as its new data reveals the employees’ biggest financial concerns as we emerge from lockdown.

The research analyses financial priorities of nearly 300,000 UK employees based on engagement with content on nudge’s platform. It found that between the months of June and July 2020, employees became more concerned with scams and separation – highlighting that lockdown has taken its toll on our mental and financial wellbeing, which nudge is warning could have a damaging impact on business productivity. The population has become increasingly wary of avoiding online scams, with interest in this topic increasing by 738%. Divorce and separation has also become a key topic for the UK, as interest in this subject soared by 518%. Although women were twice as likely to be interested in this topic than men, interest from the male population rocketed by 6500%. Interest in investing increased significantly, with an uptick of 305%. Since April, interest in the top subjects of everyday finances, budgeting and saving has halved, with financial interests becoming more diverse. This highlights the beginning of a shift in mindset from panic and short-term financial fixes to longer-term financial planning and wellbeing as people switch into recovery mode.

Most popular topics pre-lockdown: Savings - 16% Tax - 14% Investing - 9% Mortages Pensions - 9%

April 2020: Budgeting - 30% Everyday finances - 28% Savings - 25% Avoiding scams - 2% In the home - 2%

June/July 2020: Everyday finances - 16% Budgeting - 14% Savings - 12% In the home - 6% Investing - 5%

Debt, borrowing and children & family are all subjects that have risen in popularity since April, but which have the potential to increase further as worries increase around falling wages and increasing numbers of redundancies.

Jeremy Beament, Co-Founder & Director at nudge, commented: “For months, UK employees have been dealing with the financial shockwaves caused by the pandemic. With pay-cuts and redundancies on the rise, it looks like this may get worse before it gets better, and this financial stress will hit business productivity significantly. This data demonstrates exactly how the financial lives of employees are being impacted by COVID-19, and why their needs are evolving. As we emerge out of the clutches of the pandemic, it is vital that employers take steps to help their workforce take control of their money during this uncertain period. Only by giving employees the lifelong skills and knowledge necessary to make great decisions, can companies feel the considerable benefits of a financially fit workforce.”

This was posted in Bdaily's Members' News section by nudge .