Global

The Impact of Financial Circumstances on Mental Health

Financial and Mental Well-being are core components to a holistic well-being strategy. However there is also a great deal of evidence showing a correlation between the two.

January 09, 2020

Financial and Mental Well-being are core components to a holistic well-being strategy. However there is also a great deal of evidence showing a correlation between the two. Suggesting they are not only two pillars of an overall strategy but also one may beget the other.

According to a Willis Tower Watson Study

Across global employees experiencing financial insecurity impacting mental health
27% reported severe stress, anxiety or depression within the last two years, and, in many countries, employees are increasingly concerned about their finances, both immediate and long term

Substantial number of employees live paycheck to paycheck - 30% in the Eurozone countries. Many saying they cannot come up with €2,000 in an emergency.
Those with financial troubles are 2x likely to be in poor health as those who declare themselves financially unworried

Social Determinants of Mental Health

Social determinants including economic and financial hardships show an increased risk for mental health.

Studies in several countries (including South Africa, India, ) have shown an improvement in mental health (including reduction in depressive symptoms) after implementation of financial solutions such as individual loans, microfinance interventions, loan repayment flexibility
An EU study found that a 1% increase in unemployment was associated with a .79% increase in suicide. Job insecurity is associated with sub-optimal mental health
During the 2008-2010 recession there were more than 1,000 additional suicides in the UK than would have otherwise been expected with trend alone
Spain had a direct correlation with unemployment and an increased suicide rate during the economic downturn

Correlating Data by Country

Britain. Study found greater financial difficulties predicted greater depression, stress, anxiety, & alcohol dependence over time. Growing awareness of relationship between debt and mental health. 90% of UK young employees say mental health adversely effected by cost of living.
Africa. Improvements in mental health seen after deployment of government programs to address social determinants of poverty.
Australia. Financial issues are the top cause of stress. 1 in 3 Australians feels financially stressed.
Japan. 45% of Japanese expect to have to work over age 70.
Europe. 30% of Eurozone live paycheck to paycheck..

As a Contagion

Financial impact on mental health can be contagious impacting children in the household too
Parental stress can lead children to behavioral problems, difficulty in handling stress themselves, and increase the risk of mental illness

Employee Mindset on Financial Matters

The global landscape is diverse and needs differ at the local level. However when it comes to financial well-being, we see common challenges with the majority of the global workforce feeling uncertain or concerned. In addition to this, most employees are not only receptive, but also desire, access to financial tools and guidance from their employer.

According to Mercer:¹