What is financial resilience?
Financial resilience is the ability to withstand and recover from financial setbacks. It involves how effectively you can absorb, respond to, and adjust to unexpected financial shocks.
Why does it matter?
Low financial resilience can have a negative effect on someone's day to day life. It can lead to financial worry and increased stress and anxiety, which can affect their physical and mental health.
How can it impact the workplace?
Financial worries can lead to lack of concentration at work, impact workplace productivity and in some cases lead to employee absence. This comes at a cost to employers both financially and in terms of group productivity, where employee absence impacts others in the team. In 2023, it’s estimated that employers lost £7.3 billion as a result of mental health-related absenteeism.1
Helping your employees build their financial resilience can help them feel confident making short and long-term financial decisions allowing them to better manage today's money, while helping them save enough for the retirement they want.
How Royal London can help
Research suggests that members who are digitally engaged feel more confident.2
So we've created a number of ways to support your colleagues when they need help strengthening their financial resilience.
Helping you manage your scheme
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Footnotes
1 Deloitte UK Mental Health Report 2024
2 Royal London Customer relationship study, August 2023