The annual Global Financial Well-being Report from nudge reveals a global decline in hope for a positive financial future. The survey demonstrates that hope has declined from 60% in 2024 to 29% in 2025, a level almost equal to that experienced during the global pandemic.
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. Global 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 other areas. A quarter (24%) of respondents in the UK are saving less for emergencies, 30% of Japanese employees are decreasing retirement savings, and 27% of respondents in China are decreasing their health and well-being spending.
Financial health is rated the lowest out of all areas of well-being surveyed; less than one in two 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 the physical and mental effect of this.
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 about it. This reinforces the need for employers to re-evaluate the need for financial wellbeing benefits – prioritizing financial literacy to pave the way to a more financially secure and productive workforce.
“Our research highlights how widespread the impact of financial uncertainty is today,” says Jeff Miller, vice president US of nudge and certified financial education instructor. “Those who are financially illiterate are struggling to navigate the financial consequences of rapidly evolving global events. “Supporting employees with financial education is one of the most powerful ways to help them reduce stress and build resilience. When people feel more in control of their finances, it positively affects not only their holistic well-being, but also their personal and professional lives.”
