UK financial health has ‘collapsed in pandemic’, study finds
The country’s financial health collapsed during the pandemic, with 18 to 24 year olds being the hardest hit, study finds.
Insurance company Aviva conducted investigations before the lockdowns began in February 2020, with follow-ups in August and March this year, looking at how people’s relationship with finance has changed as they navigate the world. Covid-19 situation.
More than a quarter (24%) of those polled said they had made bad debt decisions in the past 12 months, with the figure rising to over half (51%) among those aged 18-24, dubbed ” Gen-Z “.
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Due to lost income, nearly a third (29%) had to borrow money, while one in ten chose to defer paying off their mortgage or personal debt.
Aviva said her research also found a strong correlation between the negative impact of unexpected events and financial instability on mental health. In the study, 39 percent admitted they had mental health issues, and retail workers were among the hardest hit (13 percent).
When asked about the state of their finances during the pandemic, 57% said they were just getting by and 30% said they feared their money was running out.
The report, released today and titled Thriving in an Age of Ambiguity, highlights the importance of better financial education in the workplace and calls on employers to ensure this is in place.
One area of respondents said they were particularly worried was planning for retirement, with almost half (47 percent) saying they didn’t know where to start.
Sophie Foster, 21, who worked as a bartender and waitress before being put on leave at the start of the pandemic said I that it agrees that employers should “provide an element of financial guidance in these situations”.
She added: “Businesses have a duty to ensure your well-being. Checkins every now and then to make sure you are doing well, financially and mentally, would make a world of difference for many who struggle during this time.
The Aviva report suggests that companies can start by introducing a workplace wellness strategy, with particular emphasis on end-of-life planning and financial strategy.