More than half (54%) of 18 to 34-year-olds feel their financial situation has negatively affected their mental health over the past year, a survey indicates.
Nearly half (48%) of people aged 35 to 44 said their mental health had been negatively affected by their finances in the previous 12 months, according to the research commissioned by St James’s Place (SJP).
Just over a fifth (22%) of people aged 55 and over who were surveyed said their finances had affected their mental wellbeing in the past year.
The research also found that people’s finances had also had a negative impact on their physical wellbeing.
Nearly half (49%) of 18 to 34-year-olds and 46% of 35 to 54-year-olds said their finances have negatively affected their physical health, as did nearly a quarter (23%) of over-55s.
St James’s Place’s Financial Health Report involved 6,000 people across the UK. Opinium carried out the survey in March and April.
Around one in six (17%) people believe financial pressure has affected their physical appearance, while a similar proportion (16%) said it is leading them to buy or prepare cheaper, less healthy food and 15% said it is causing them to lose sleep.
Looking at the next year, 29% are worried about keeping up with energy bills and a quarter (25%) are concerned about rising food bills.
Nearly a fifth (19%) are worried they are not saving enough to feel financially secure now and in the future, with one in 10 (10%) concerned they will not have enough money to meet their mortgage repayments.
The research also found that nearly two-fifths (38%) of people have less than £10,000 in savings, investments and physical possessions, with one in seven (14%) saying they have no wealth at all.
One in five (21%) UK adults describe themselves as struggling financially and nearly three in 10 (28%) do not feel financially resilient or able to cope with an unexpected financial shock.
Less than two-fifths (38%) of people surveyed have a financial plan in place, but those who do are significantly more likely to feel financially resilient than those without one, at 76% versus 52%.
Alexandra Loydon, group advice director at St James’s Place, said: “Many people remain worried about their finances looking ahead to the next 12 months, but there are practical steps that can help.
“Understanding your financial position and putting a clear plan in place can help build resilience and give people greater confidence about the future.”
She added: “Finances can be a difficult topic to discuss, but people should not feel they have to manage these concerns alone.
“Seeking support from family and friends, debt advice charities, financial advisers or mental health professionals can provide valuable guidance and reassurance during difficult periods.”
Prime Minister Andy Burnham has promised to take action on subscriptions as part of moves aiming to help ease cost-of-living challenges for households.
He plans to tackle “subscription traps” by requiring companies to make it easier to cancel subscriptions and provide more information about costs up-front rather than quietly auto-renewing them at a higher price.
Katie Horne, banks relationship manager at Flagstone, said: “Items and services we used to take for granted feel unaffordable and aspirations for greater financial security can feel out of reach.
“It’s unsettling to see such high levels of financial discomfort among all generations.”
She added: “The feeling of financial insecurity is often an all-consuming one that can have a hugely detrimental impact on a person’s mental, emotional and physical health.”
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