Money worries cost Scottish businesses over £250m each year - Aegon

These days off, combined with time lost due to employees with money worries not concentrating at work, is costing Scottish businesses £289 million in lost output every year.

Based on a variety of factors, including their capacity to absorb financial shocks and meet financial goals, the findings suggest workers in Scotland experience poor financial wellbeing compared with other regions:

The findings follow landmark research published by Aegon and the Centre for Economics and Business Research which found UK employees take over four million days off work each year because of financial worries.

This costs the British economy £1.6 billion a year in lost productivity.

Poor financial wellbeing is leaving workers in Scotland with a gloomy outlook for their financial future; nearly a third (28 per cent) say they cannot enjoy life because of financial worries, while two in five (40 per cent) feel they will never have all the things they want in life because of their financial situation. Yet, 41 per cent said they are doing everything they can to secure their financial future.

Workers in Scotland point to high house prices (50 per cent) and rental costs (45 per cent) and insufficient pay rises (58 per cent) as the greatest barriers holding them back from securing their financial future. While bills and the rising cost of living combined with credit card debt and loans are the two biggest worries playing on Scottish workers.

The report reveals employers could be doing more to improve employees’ financial wellbeing; three quarters (73 per cent) of Scots reported that their employer does not offer any financial education.

Steven Cameron, pensions director at Aegon, said: “We’ve uncovered significant evidence that poor employee financial wellbeing is affecting the productivity of workers across the UK. Some will naturally conclude that this problem is worse outside of the prosperous South. The reality is not so straightforward.

“While businesses have traditionally focused on physical and mental wellbeing, the financial side is clearly having a detrimental impact. Our research suggests businesses who address this issue are likely to see tangible improvements to their bottom line.”

Aegon’s findings come as part of a wider campaign launched by Aegon which aims to tackle financial wellbeing in the workplace.

To do this, Aegon is calling for: