Employers risk losing workers to financial pressures

A new report shows that workers’ reluctance to share financial pressures with their employer is creating retention risks for firms.

Figures show that workers in their 40s and 50s are under much greater financial pressure than at any other point in their lives, but many are hiding this from their employers.

‘Midlife Money Squeeze’

The research, conducted by Octopus Money, found that almost one in five midlife workers admit that financial stress is affecting their performance at work, yet just 29% say they’d feel comfortable discussing it with their employer or colleagues.

According to the report, the reason behind this greater financial pressure at this stage in life is due to being sandwiched between financially dependent adult children and ageing parents who need increasing support.

This combination costs an average of £3,498 a year.

Of the 2,000 UK parents surveyed, 92% of those aged between 45-65 said they’re still contributing financially to their children into adulthood – one in five don’t think their children will ever become fully financially independent.

Retention Risks for Employers

Many HR leaders believe the ‘Midlife Money Squeeze’ is creating retention risks for businesses.

Nearly half (48%) of those affected say they would consider changing jobs to earn more money to better support their family.

Commenting on the findings, Tom Francis, Head of Personal Finance at Octopus Money, said, “The impact of supporting two generations at once is not just financial, but emotional. What strikes me most is that it is affecting performance at work, yet few would feel comfortable raising it with their employer. That silence is costing both employees and businesses.”

He added, “We see that too many employees are in the dark about the money basics, starting with something as fundamental as how much they have in their pension.

“Financial wellbeing support at this stage of life should not be seen as a perk. For many, it is the difference between staying in control of their future plans and falling behind at a point when the pressure is coming from all sides.”

To find out more about contracting, please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.