Financial wellbeing in 2025: A snapshot of current workforce trends
But it’s also apparent that employers are recognising the specifics of financial wellbeing and what they can do about it.
Around the world
For its Global financial wellbeing report 2025, nudge surveyed 11,513 employed people across 17 countries including the UK in February 2025.
Unsurprisingly, financial sentiments vary across different countries and demographics, but overall positive emotions around money, such as pride and hope, have fallen since last year.
There is a growing sense of hopelessness emerging. Less than a third (29%) of people said they felt hopeful about their financial situation, a sharp decline from 60% in 2024. People are worried about inflation (56%), housing affordability (30%), and healthcare (28%).
Financial health is rated the lowest out of all areas of wellbeing surveyed – just under half (49%) of people rated their financial health as good or excellent, and 21% rated it as poor or very poor.
In the UK
And level of financial wellbeing across the UK has fallen for the first time, with data from the Finwell Index within Stream's report, The state of financial wellbeing 2025, showing growing financial pressure on households and widening inequalities across gender and age.
The Index measures the UK’s financial wellbeing using data from a nationally representative survey of 2,321 adults, assessing both financial capabilities (what people are able to do) and subjective wellbeing (how they feel about their finances). It found that the level of financial wellbeing across the UK has fallen to 99.1 from the 2024 baseline of 100.
Women’s overall financial wellbeing scores have dropped from 97.9 to 95.8, while men’s have remained broadly stable.
This divide is particularly notable in financial resilience, where women’s scores fell by 3.9 points while men’s increased by 1.2. Women also reported lower levels of subjective financial wellbeing, with more financial guilt, worry and dissatisfaction about their finances.
Financial wellbeing continues to rise with age. Young people (18-24) have the lowest score of any age group (87.7) while those aged 75 and older score 30 points higher (117.7).
Early intervention makes a difference. Those aged 25-34 saw a 4.7 point improvement year on year, suggesting that targeted support helping young people gain better visibility of their finances is essential to building resilience and long-term financial security.
Hard figures
Three in ten adults across the UK have less than £10,000 in savings, according to St James’s Place: Financial Health Report 2025: A portrait of the UK’s wealth and wellbeing.
The polls of 6,000 UK adults conducted in December 2024 and February 2025 paints a picture of average finances. Excluding property, the average UK household wealth in terms of savings, investments and physical possessions is £126,483.
But six in ten people do not feel financially comfortable, 16% are struggling financially and almost a third (31%) have found their financial situation has worsened in the last 12 months.
It’s not all bad news – just over a fifth (21%) say their financial situation has improved in the last 12 months and 65% feel financially resilient. One in three think they’ll be able to save more money in 2025. And twice as many people with a financial plan expect to have more disposable income this year.
The difference in financial wellbeing among different demographics is also clear: a tenth of 35-54 year olds have no financial safety net. And 52% of those under 34 have a financial plan in place.
What about demographics?
A key factor in addressing financial wellbeing is how to reframe the ageing society, addressed in Fidelity International’s global survey of more than 11,800 people aged over 50, The longevity revolution: Preparing for a new reality (2025).
It found those who have saved more generally felt more physically, emotionally and socially prepared for retirement. But it also higlighted the interconnectivity of financial security with emotional wellbeing, social connectivity and physical health. Addressing financial anxiety early is critical.
But it’s not all about money. About 70% of pre-retirees aged over 50 expect to work longer, primarily to stay mentally and physically active (38%) rather than as a financial necessity (26%).
Employers’ role
So it’s not surprising that financial wellbeing is fast becoming a defining opportunity for employers in the context of rising ill-health, an ageing workforce and how long-term savings threaten financial resilience, REBA’s Financial Wellbeing Research 2025, in partnership with WEALTH at work, reveals.
Employers are increasingly recognising the issues impacting financial wellbeing and where the gaps are.
Two-thirds (67%) of the 223 reward professionals representing 1.3 million employees who responded to the research, view improving workforce health as a strategic financial wellbeing objective for mitigating people risk.
Nearly two-thirds (62%) of employers acknowledge that financial pressures on working parents and carers have become a critical people risk and are taking action by enhancing support beyond minimum requirements, either now or in the future.
Within two years, the vast majority (86%) of respondents will be taking action on financial wellbeing based on gender.
But there is work to be done, with just over half (52%) currently using data to identify DEI gaps, and just a fifth 21% currently see the negative impact of health on pensions savings.