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The survey of more than 11,500 workers in 17 countries shows how employees are adapting their behaviour to cope with uncertainty – often in ways that could damage long-term resilience.
Globally, 44 per cent of people are cutting back on discretionary spending, such as dining out and entertainment, while 42 per cent are reducing luxury purchases. But some are also scaling back on areas that underpin financial security: 24 per cent of UK employees said they will save less for emergencies, while nearly a third of Japanese workers plan to reduce retirement contributions. In China, 27 per cent said they would cut spending on health and wellness.
Women are more likely than men to cut non-essential spending, suggesting they are quicker to adjust to financial conditions. Yet the report also highlights a gender divide in financial confidence, particularly around tax and investing, which may leave women more exposed to long-term risks.
Financial health lags behind
Out of all areas of wellbeing surveyed – physical, mental, social and financial – financial health was rated the lowest. Fewer than half (49 per cent) of respondents rated their financial health as good or excellent, while more than one in five (21 per cent) rated it as poor or very poor.
The link between money and wider wellbeing is clear. Those with poor financial literacy reported significantly higher levels of stress and anxiety, alongside physical symptoms such as sleep problems (27 per cent), fatigue (20 per cent) and headaches (19 per cent). Alarmingly, 7 per cent of people with poor literacy reported suicidal thoughts, compared with 5 per cent among those with better understanding.
Relationships are also at risk. Almost one in five respondents said their financial behaviours had led to stress and tension at home, while 15 per cent said money had made them feel disconnected from loved ones. Conversely, those with good financial literacy were three times more likely to say their money habits had built trust and transparency in relationships.
The role of employers
With financial stress spilling into physical and mental health, the workplace is increasingly viewed as a vital setting for intervention. Nudge’s research shows that employer-provided financial education has a measurable impact on employee wellbeing and loyalty.
Employees with access to financial education were more likely to describe their relationship with their employer as strong (36 per cent vs 26 per cent of those without) and to believe their company supported their personal goals (40 per cent vs 25 per cent). They also reported higher levels of pride and optimism about their financial future, alongside fewer feelings of anxiety and shame.
Jonathan Bellamy, UK benefits manager at AstraZeneca, said:
“If someone is stressed by their finances, it can cause a lack of focus and decreased productivity. Ultimately, it could also lead to longer-term mental health issues, so it is important employers provide support.”
Barriers remain
Despite clear evidence of the benefits, many organisations remain hesitant. Half of employers surveyed admitted they struggle to prove the return on investment of financial wellbeing programmes, while 40 per cent said they lacked sufficient insight into the unique financial needs of their employees. A third also cited a lack of time to effectively run programmes.
Employer visions for the future are becoming more ambitious. The report highlights aspirations for personalised, real-time financial education tailored to employees at different life stages; digital platforms for tracking spending; and greater cultural integration of financial wellbeing into business values.
Tim Perkins, CEO and co-founder of Nudge, said the findings underline the urgency of financial wellbeing as a business priority.
“When people feel financially secure, they thrive, and so do organisations. Financial wellbeing has never been more urgent, especially with global volatility and economic change.”
For UK employers, the message is clear: financial stress is no longer a private issue, but a workplace risk that can affect productivity, retention and health. Investing in financial literacy and support could be one of the most effective ways to help staff navigate a turbulent economy – and to strengthen resilience in the workforce for years to come.
