The annual Global Financial Wellbeing Report* has revealed a global decline in hope for a positive financial future. The survey, which collected data from over 11,500 employees across 17 countries, demonstrated that hope has declined from 60% in 2024 to just 29% in 2025 – a level almost equal to that experienced during the global pandemic.
Global financial worries
The main global financial worries are all linked to economic uncertainty with inflation (56%) as a top concern, followed by housing affordability (30%) and healthcare (28%). There is also a direct correlation between inflation and the main financial concerns by country as increasing food costs feature as the top concern for most countries, with the exception of the UK, Germany, Italy, Argentina and Japan where energy costs take top position.
The effect of this seemingly hopeless financial future is a considerable adjustment to short-term spending to secure long-term financial security. Globally spending on dining out (44%) and luxury purchases (42%) is reducing in response to global economic instability. A more worrying trend is respondents are reducing spending in critical areas.
- 24% of respondents In the UK 24% stated that they will save less for emergencies.
- 30% of respondents in Japan are decreasing the amount they are saving for retirement.
- 27% of respondents in China are decreasing their health and wellbeing spending.
Impact of poor financial literacy
Financial health is rated the lowest out of all areas of wellbeing surveyed, less than 1 in 2 rate their financial health as good or excellent. There is a direct correlation between poor financial literacy and poor mental health. Those who understand less about the key areas of finances that directly affect them, such as inflation, taxes, pensions, interest rates, trade tariffs and mortgages, are much more likely to feel both a physical and mental effect of this.
The survey results clearly demonstrate that people with poor or very poor literacy report higher levels of:
- Suicidal thoughts (7% vs. 5%)
- Stress (44% vs. 35%)
- Anxiety (37% vs. 28%)
- Panic attacks (12% vs. 9%)
Conversely the survey results demonstrate that those with a higher level of financial literacy are investing more in their financial futures and feeling more confident for it. This reinforces the need for employers to re-evaluate the need for financial wellbeing benefits – prioritising financial literacy to pave the way to a more financially secure and productive workforce.
Tim Perkins, nudge co-founder and CEO said: “What is very clear from our findings is that financial uncertainty is impacting everyone around the world. Without strong financial literacy, people are struggling to understand the financial implications of the geo-political changes that are happening at pace.
“Financial literacy is the most effective route to reduce financial stress during volatile times. By equipping employees with the knowledge to better manage their finances, employers will ease the pressure on employees’ minds, bodies, and relationships. Employers have a strong opportunity to stand alongside their workforce during these turbulent times, with financial education serving as the lifeline needed to face uncertainty with confidence and resilience.”
*Global Financial Wellbeing Report from nudge – read the full 2025 global financial wellbeing report here.
