09 Apr 2019

Why the symbiosis between mental and financial wellbeing is most damaging in young staff

The holistic nature of wellbeing has been well documented. Poor physical wellbeing can lead to time away from work, which may cause financial strain, which can develop into mental ill-health, which can circle back round to even poorer physical health. However, something which is often overlooked is the symbiotic relationship between financial and mental wellbeing, irrespective of physical health. This relationship is most commonly presented in young people, and those who are new to the workforce.

Lack of savings
BITC (2018) stats revealed that 90 per cent of young people say their mental health is affected by the cost of living. This is unsurprising as, according to research from the Huffington Post, young people earn some £6,700 less than the national average, and the Office of National Statistics revealed that 37 per cent of 22 – 29 year olds are in some form of debt. The 10 per cent most indebted owed at least £14,200 in 2014 to 2016, while the 10 per cent least indebted owed £100 or less (excluding student loans).

Interestingly the levels of savings held by 22 - 29 year olds are almost exactly inversed. While almost half had savings (47 per cent), the top 10 per cent of savers had at least £15,000 put away in 2014 to 2016, while the bottom 10 per cent had saved less than £100.

Newly graduated
It seems that young people are in a uniquely difficult financial situation, which, compounded with the rise in mental health issues, which have increased by 19.3 per cent since 1999, can create a very concerning cycle of financial stress (NHS). This has left 83 per cent of young people expressing concerns that they will never be stable in terms of money (Money For Life).

However, these figures do not account for young people who have recently graduated university. The value of outstanding loans at the end of March 2018 reached £105 billion and the Government forecasts the value of outstanding loans to be around £450 billion (2017‑18 prices) by the middle of this century.

The average graduate in the UK from a three-year degree carries more than £50,000 of debt and faces high interest rates, alongside what is now being referred to as ‘The Graduate Blues’.

City mental health alliance discovered that 49 per cent of recent university graduates admitted that they have suffered from mental health problems since they left university, potentially an understandable consequence to the constant questioning of what they plan on doing next, and when they are going to get a ‘proper’ job.

Coming back home
Adjusting back to the ‘home life’ can also be daunting. The transition from living independently to living back with family can be overwhelming, and after the high of graduation day, it can feel as though things are starting to stagnate.

Many students go to university to get a feel of what life is like in the ‘real world’ and gain some independence from their parents. Yet once their degree is over, returning home can be seen as a step backwards for many young people. Overall, it is a huge adjustment period for graduates.

Employer action
With this in mind, while mental health resources and financial education is important for all members of the workforce, employers should be paying particular attention to their younger workers. Perhaps considering different ways of communicating their existing resources that will create maximum impact for the age group. If you would like to know more about how to keep your employees engaged, no matter what generation they fall into, you can find out more in this infographic.

This article is provided by Personal Group.