Just a problem for lower earners?
Spotlight on income brackets
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Poor financial health doesn't just affect lower earners. Over half of those earning between £70-80k per annum say they’ve felt stressed due to financial concerns. It's important to delve into your employee insights and data and see beyond average scores. Using deeper insights will highlight areas of vulnerability and the areas most in need of support.
Modest earners – up to £30,000 per annum
Those in this income bracket have had a turbulent time over the last year in particular. Many are feeling the impact of inflation as well as rising household costs in the form of energy prices whilst incomes are remaining static or even reducing. This has resulted in high levels of borrowing, low and often non existent savings and increasing levels of stress and anxiety.
Biggest concerns
Financial worries 31%
Mental health 28%
Physical health 22%
Those who feel concerned or negative and can’t cope between paydays
Within first few days 45%
Halfway through the pay cycle 30%
Within the last few days 45%
More than 2 in 5 have less than 1 month savings including none (45%)
Over half (57%) have borrowed to meet basic financial needs
More than 3 in 4 have felt stressed in the last year
Almost 3 in 4 have lost sleep worrying in the last year
Half have struggled to cope with daily life
2 in 3 do not feel in control of their financial future
More than 2 in 5 are considering changing company in the next 12 months
Moderate earners - £30,000 to £70,000 per annum
Half (50%) of this earnings group admit to feeling like they are struggling to cope with daily life and cite financial health, mental health and work life balance as their biggest concerns currently. As they move through the pay cycle, these pressure and concerns begin to mount further. More than 2 in 5 are considering changing company in the next year and the top reasons are for more job security and to improve their mental health.
Biggest concerns
Work life balance 21%
Mental health 19%
Financial health 19%
Those who feel concerned or negative and can’t cope between paydays
Within first few days 8%
Halfway through the pay cycle 19%
Within the last few days 27%
More than 1 in 4 have less than 1 month savings including none (27%)
3 in 5 (60%) have borrowed to meet basic financial needs
Almost 3 in 4 have felt stressed
More than 2 in 3 have lost sleep through worrying in the last year
Half have struggled to cope with daily life
More than 2 in 5 do not feel in control of their financial future
More than 2 in 5 are considering changing company in the next 12 months
Higher earners - £70,000 per annum and over
Often, it’s felt that financial issues only affect the young or lower paid. Unfortunately that’s not necessarily the case. Those with higher earnings would typically have greater expenses, they may well be the main income provider in the household. They may be of an age whereby they have older dependents as well as young adults that rely on them which can cause additional financial pressures.
The data shows that for this population, things are not healthy. Debt and borrowing are significant issues including the high levels of payday lender and loan shark use. There are limited savings and many are struggling to cope with daily life. More than half are considering changing their job in the next year and the main reason is to earn more money following providing more job security and improving mental health.
Biggest concerns
Financial health 17%
Work life balance 17%
Providing for and protecting my family 16%
Almost 2 in 3 (64%) have been impacted by serious debt either directly or someone close to them in the last year (more than double the UK average of 30%)
Almost 2 in 3 say they’ve struggled to cope with daily life – higher than the UK average of 51%
1 in 4 have less than one month’s savings (including none)
This is even higher for those earning £90,000 - £100,000 where this rises to almost half (46%)
2 in 3 (66%) have borrowed to meet basic financial needs.
This rises to 85% for those earning 70-80k. More than half (55%) have done this via a payday lender or loan shark!
Over half of those earning £70,000 to £80,000 a year have suffered stress directly as a result of financial concerns
More than 3 in 5 of those earning £70,000 - £80,000 are in crisis or vulnerable when thinking about their everyday money management
3 in 4 have felt stressed in the last year – even higher for those earning £70,000 to £80,00 where it rises to 89%
More than half are considering changing company in the next 12 months