Nearly a quarter (24%) of employees* admit they made a bad decision about debt during the pandemic, according to a new study from Aviva that has examined experiences of personal, workplace and financial wellbeing since early 2020.
Worryingly, this figure rises to more than half (51%) of those aged 18-to-24, dubbed ‘Gen-Z’. Amid the turmoil of the pandemic, young people have emerged as one of the most vulnerable groups in society and have been some of the hardest hit.
More than a third (36%) of ‘Gen-Y’ aged 25-to-39 also feel they made a bad debt decision since Covid-19 struck.
Aviva’s report – Thriving in the Age of Ambiguity: building resilience for the new realities of work – which launches today, reveals how our relationship with finances, work and our hopes for the future have evolved as we adapt to the ambiguity from the last 12 to 18 months. Conducted in collaboration with Business Wellbeing Specialists, Robertson Cooper, the research reveals that personality plays a key role in determining our preferences, behaviours, and outcomes – at home and work.
More than a quarter (29%) of respondents disclosed they have had to borrow to replace lost income, while 30% stated they are concerned their money will run out.
The research also shows a concerning number of employees (39%) agree their current financial situation negatively impacts their mental health, while 60% feel their finances control their lives.
However, the report also reveals those who suffer from poor financial wellbeing do not necessarily think of themselves as bad with money – challenging the stereotype that money worries arise from disorganisation or knowledge gaps.
More than two thirds (68%) of employees with poor financial wellbeing think they are organised with their money, and 64% always try to minimise debt. The research shows financial factors only account for half (51%) of someone’s sense of financial wellbeing; the rest is driven by other factors, including personality type.