• New report finds that millions of British have no financial safety net and are struggling to prepare for the future
• Nearly one in four UK employees have no emergency savings while 27% of higher earners are reporting financial stress
• Report calls for urgent reform to financial education for adults in the workplace, with evidence demonstrating significant improvements in financial resilience and health once delivered

Millions of UK workers have no emergency savings, are overwhelmed by debt, and aren’t saving enough for retirement, according to a new report¹ published today by the City of London Corporation and nudge.

An estimated 8.2 million (24%) UK employees have no emergency savings at all, leaving them vulnerable to unexpected financial shocks. A further 4.4 million (13%) report being overwhelmed by debt.

Higher earners are feeling financial pressure too. Among workers earning more than £95,000 a year,  (27%) reported stress linked to finances while (20%) report struggling with their sleep.

Short-term financial pressures are also impacting long-term financial planning. Just 9.2 million (27%) of employees are happy with their retirement contributions while 15.1 million (44%) either do not know whether they are contributing enough or do not understand how their retirement savings work.

These results come despite 94% of UK employers believing their employees are confident in managing their savings.

Policy Chairman of the City of London, Chris Hayward said:

“Millions of people across the UK are understandably struggling with their finances. Despite the challenging economic environment, many were never taught how to build resilience to manage shocks, nor how to plan for the future.

“Without urgent action to improve financial literacy and support in the workplace, too many people will continue to face unnecessary financial stress and uncertainty.”

Issues including geopolitical conflict, rising housing costs, higher energy prices and food inflation have all made managing personal finances more difficult. But a lack of financial education often leads to worse financial outcomes too.

Employees with lower financial capability were:

• significantly less likely to have emergency savings, with 75% reporting no emergency fund vs. 16% of employees with strong financial literacy
• Less likely to have a retirement fund, with 33% reporting having no retirement fund at all vs. 7% of employees with strong financial literacy and;
• overspend their income each month 49% vs. 12% of employees with strong financial literacy

Conversely, employees receiving financial wellbeing support are less likely to report stress: 32% vs. 41% and anxiety 27% vs. 38%

To improve financial literacy, the report’s authors are calling on employers to prioritise more personalised, life-stage financial well-being support that centres on education and is built around real-world scenarios. Roundtables conducted as part of the research showed that employees felt that current support was often too generic.

The report also calls on government and regulators to clarify guidance vs regulated advice boundaries; expand trusted financial education support into the workplace; and support consistent employer standards.

Employers told the report authors that:

• 390 (39%) want government-backed financial education resources;
• 370 (37%) want public awareness campaigns; and
• 340 (34%) want clearer boundaries between financial guidance and regulated advice

CEO and Co-Founder of nudge, Tim Perkins said:

“This report shows that workplace financial education plays a critical role in improving financial resilience and health. When people understand how to manage their money, they are better prepared for financial shocks and more likely to improve their overall financial situation and wellbeing.

“The impact extends beyond the individual, helping to create healthier families, stronger communities and a more resilient UK economy. We would encourage Government to consider tax incentives for employers investing in financial wellbeing support, reflecting a trend we are already seeing emerge in the United States.”

Notes to editors

1. The report combines employer insights from qualitative research, including two roundtables and 8 semi-structured interviews with industry experts and employers responsible for a collective headcount of over 104,300 UK employees, with a survey of 1,000 senior HR, Reward or Benefit decision-makers (Director level and above) at UK employers with 500+ employees, conducted by Censuswide. The report also draws on findings from nudge’s 2026 global financial wellbeing research covering 11,500 employees across 17 countries, with 2,102 from the UK.
2. The estimated number of employees is calculated using the percentages identified in our reporting against the latest ONS employment data Number of People in Employment (aged 16 and over, seasonally adjusted):000s - Office for National Statistics. These figures are rounded down to the nearest hundred thousand.
3. Defining low financial literacy: https://www.gov.uk/research-for-development-outputs/financial-literacy-and-financial-resilience-evidence-from-around-the-world

About nudge

nudge is the leading financial education platform helping employees make great financial decisions, when it matters. Combining personalized education, behavioural science and technology, nudge delivers proactive guidance tailored to each employee's goals, life stage, location and workplace benefits.

Trusted by global employers, (such as Microsoft, Accenture, PepsiCo and P&G) nudge helps employees build financial confidence and resilience while enabling organizations to improve financial wellbeing, increase benefit engagement and maximise the value of their reward investment. Through impartial education, enterprise connectivity and human expertise, nudge supports better financial outcomes for employees and healthier, more productive workforces.

For more information, visit nudge-global.com.