Cost of living named top financial worry for UK workers, TELUS Health study finds

Cost of living dominates financial anxiety

The cost of living has emerged as the single biggest source of financial stress for UK workers, according to the latest TELUS Mental Health Index from TELUS Health. The Q2 2026 report found that 62 per cent of employees rank it as their top money worry, well ahead of concerns about retirement savings (12 per cent) and emergency savings (eight per cent).

The survey, based on responses from 2,000 people in the UK who are currently employed or were employed in the preceding six months, was carried out online between 5 and 18 June 2026.

Financial stress hitting productivity

The report found that 62 per cent of workers feel worried or anxious about their finances at least some of the time, while 10 per cent say they always feel anxious about money. Seventeen per cent said their personal financial situation had negatively affected their work productivity, with this group scoring nearly 26 points lower on the Index than those reporting no impact, and more than 18 points below the national average. Three per cent said they had missed work entirely because of financial stress.

Paula Allen, global leader of research and insights at TELUS Health, said financial strain was affecting both mental health and the ability to work effectively, and pointed to an opportunity for employers to offer clearer support around retirement and savings.

Younger workers and carers most affected

The data showed uneven impacts across the workforce. Workers under 40 were three and a half times more likely than those over 50 to report a negative productivity impact from financial stress, while managers and parents were 70 per cent more likely than their peers to report the same.

A quarter of workers said they provide care or financial support to adult children, ageing parents or other family members. Among this so-called “sandwich generation”, 34 per cent reported a negative impact on their finances, 26 per cent on their mental health and 15 per cent on their work productivity.

Gaps in understanding of retirement benefits

The report also highlighted a benefits literacy gap, with 62 per cent of workers contributing to a workplace retirement or savings scheme saying they do not have a strong understanding of how it works. Five per cent said they did not understand it at all, and this group scored 48.7 on the Index, nearly 24 points lower than those who understand their scheme very well, who scored 72.3.

Fifty-nine per cent of workers said they wanted employer-provided resources or support for retirement, pensions or savings, making this the most requested category of financial support.

Stigma remains a barrier to seeking help

Alongside financial pressures, the report pointed to continuing stigma around mental health at work. Just over half of workers, 53 per cent, said they felt comfortable telling their manager about a mental health issue, while 27 per cent said they would not. Those who would not feel comfortable scored 12 points lower on the Index than those who would.

For substance use issues specifically, the leading barriers to seeking help were stigma or embarrassment (25 per cent), confidentiality concerns (24 per cent) and fear of workplace disclosure (21 per cent).

Benchmark scores on the Index run from 0 to 100, with 80-100 classed as optimal mental health, 50-79 as strained, and 0-49 as distressed.