PIMFA
Financial Health
Most of us will have known what it’s like not to have enough money to cover the bills at some stage in our lives and the stress that comes with it. But what if that was what you were having to live with day-to-day?
According to our partners at the Money and Mental Health Policy Institute (MMHPI) just under half (46%) of people in problem debt also have a mental health problem.
Moreover, 86% of people that responded to a recent MMHPI survey of nearly 3,500 people with experience of mental health problems said that their financial situation had made their mental health problems worse.
Almost one in five (18%) people with mental health problems are in problem debt and people experiencing mental health problems are three and a half times more likely to be in problem debt than people without mental health problems (5%). Finally, 72% of respondents to MMHPI’s survey said that their mental health problems had made their financial situation worse.
Meanwhile, the charity Mind points out that financial worries can trigger feelings of anxiety and panic, that mean bills go unopened or benefits assessments are missed.
They add unsurprisingly that money worries can lead to sleep problems, particularly where there are concerns about being able to afford the things to stay well such as housing, food, water, heating, or treatments like medication and therapy. It is for these reasons that PIMFA has long been a supporter of improving the Financial and Mental Wellbeing of the nation. Current debates around how people can be supported tend to focus on what mechanisms exist to help people who, perhaps, are less likely to need help because they are already saving or investing. Yet, at the same time research from the International Longevity Centre has shown that those on the lowest incomes are those that benefit most from financial advice. It also shows that those on lower incomes are far less likely to access professional advice because of the cost of doing so, despite the fact that they benefit most from it in the long term.
PIMFA believes more can be done to help. It’s why we’ve proposed a simplified advice model to the Government and Financial Conduct Authority (FCA) to help people save more and manage their finances in a better way. It’s also why we’ve partnered with MMHPI, Which? and a whole host of other organisations to combat fraud through the Online Safety Bill currently progressing through Parliament. It is also why we will be launching a website for the public to access information to help them with their financial and mental wellbeing including where to get advice and guidance from professionals.
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Some of the biggest and most momentous events in our lives can have an impact on our finances and futures plans, and research has shown that financial and mental health are often linked. Poor mental health can make managing money harder and worrying about money can make your mental health worse. In the UK it has been reported that 94% of employees are suffering from money worries* and 59% rank it as their biggest cause of stress and anxiety**.
Managing your financial and mental wellbeing by getting support, being informed and planning ahead to meet your needs is incredibly important and can help achieve peace of mind for us all.
We know navigating through your life’s most significant moments can be stressful and fully qualified and FCA regulated financial advisers and wealth managers can help by providing support, advice, information and services to ensure that you don’t have to face these difficult decisions alone.
*Source: Close Brothers, Financial Welling Index 2019
**Source: GettaSub
