OpinionMay 23 2017

How money worries can affect mental health

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“A lack of money is the root of all evil,” according to George Bernard Shaw. A sweeping statement, but not without its merits.

Shaw’s quote is not just about those on the poverty line, it’s about people with all kinds of wealth.

Money preys people’s minds and can drastically impact their wellbeing. Even those who are making a living wage can still be plagued with finance concerns. Can I afford this coffee? How am I going to pay the rent? Where’d my pay check go?

Thousands of people in the UK are suffering with mental health problems. A study from the Mental Health Foundation found that nearly two-thirds of people say they have experienced a mental health problem.

Mental health is heavily linked to the state of one’s finances. Living in financial stress can lead to mental health problems. The problem then tends to escalate because dealing those with mental health find it difficult to cope with finances.

There is a desperate need to increase the capacity of advice and also to provide generic financial guidance.

Our recent research found that less than a quarter of 30-45 year olds felt positive towards their financial future. With childcare costs, student debts, mortgage payments, caring for their elderly parents and overall cost of living, it’s understandable this generation feel their money is being stretched too far.

So the picture looks fairly bleak. However, our research also showed that those with a financial plan in place felt significantly more positive. Some 64 per cent of this with a plan felt positive about their financial security, compared to just 23 per cent of those without a plan.

Planning helps. However, people have a tendency to delay things and the majority of the population put financial planning off. They blame their lack of disposable income and think the next year will be better, and they can begin planning then.

However, the next year comes and the improvement has not been as drastic as anticipated and the can gets kicked down the road, till before you know it, retirement is right around the corner.

It can be hard to talk about money and plans surrounding it. A professional opinion can help. Face-to-face advice leads to the best outcomes for people and there is a desperate need to increase the capacity of advice and also to provide generic financial guidance.

Indeed, creating affordable and accessible financial guidance is not only necessary for the economic health of our nation, it’s key for the mental health.

Jane Goodland is responsible business director for Old Mutual Wealth