The UK’s latest State of Financial Wellbeing Index has revealed financial stress to be the top cause of poor wellbeing for retail workers in 2025.
The new report, published by the Financial Wellbeing Forum and supported by Wagestream and the Retail Trust, finds a staggering 92% of retail workers think the cost of living crisis “will never end”- even higher than the UK average of 88%. Money was already the top concern at the beginning of the crisis, when the index was first launched in 2022, but the gap between money and any other wellbeing concerns has widened – by 59%.
Employers have rushed to put additional financial support in place, with around 75% of retailers offering new types of financial education since the Cost of Living Crisis began. But the report delves into the complexities of retail workers’ financial situations, revealing that they often hold conflicting views about money – making it challenging for employers to provide effective support.
Rather than focusing on short-term reaction to the current Cost of Living Crisis, the researchers say there is still time for employers to pre-emptively tackle the wider ‘Cost of Life’ from colleagues’ financial stress. This shift would see retailers considering practical, flexible initiatives both for the long-term, like workplace savings schemes and financial coaching, and immediate relief such as debt helplines and discounts.
“Retail’s large workforce and the fact that wages are skewed to the lower end of the scale means that the cost of living crisis is more acutely felt in our sector,” said Chris Brook-Carter, CEO of the Retail Trust. “While many of the employers we work with have been taking steps to address this, the report highlights what more they can do to support the long-term financial wellbeing of their employees and foster a healthier, happier and more productive workforce.”
Therese Procter, FWF chair, says: “This is the next big shift in workplace financial benefits, where retailers move from fire-fighting to future-planning. It’s about equipping employees with the financial skills and tools they need to not just survive, but thrive long-term. This means tools to build healthy savings habits, manage debt effectively, and plan for the future.”
The report is being launched today at an exclusive industry event attended by leaders from major retailers like Tesco, Next, Aldi and Primark. The FWF Summit will provide a forum for discussion and collaboration on how to best support the financial wellbeing of retail workers.
