The hidden cost of financial stress: 5 eye-opening stats every employer needs to know

1 Apr

For many New Zealand employers, financial well-being is an afterthought—a scattered initiative here, a lunchtime seminar there, or a few resources buried deep in an intranet page.

Yet financial stress is one of the biggest productivity killers in the workplace. Employers who fail to take it seriously miss a significant opportunity to unlock higher performance, boost retention, and show employees they genuinely care.

Here are five statistics proving that financial stress is a workplace issue you can’t afford to ignore.

1. 70% of Kiwis Are Worried About Money

Source: FSC, 2024

A staggering 70% of New Zealanders say they are stressed about money daily, weekly, or monthly. The rising cost of living and housing affordability pressures are leaving employees feeling anxious, distracted, and under financial strain.

2. Financially Stressed Employees Lose 7 Hours of Productivity Per Week

Source: SHRM, 2023

On average, financially stressed employees lose seven hours per week due to:

Worrying about money
Handling personal financial issues during work hours
Dealing with stress-related fatigue

If you have 100 employees, and 70% of them are financially stressed, that’s the equivalent of losing 13 full-time employees’ worth of productivity each year.

3. Financial stress increases employee turnover – and it’s expensive

Source: PwC, 2023

Financially stressed employees are twice as likely to be actively job searching to secure a higher salary and nine times more likely to have issues with co-workers.

Replacing an employee can cost anywhere from 50% to 200% of their annual salary, making turnover one of the most expensive consequences of financial stress.

4. 61% of NZ employees have experienced burnout, with financial stress a key cause

Source: IT Brief, 2024

Burnout isn’t just about long hours and demanding workloads—financial strain is a major driver of mental exhaustion. Financial stress triggers sleepless nights, anxiety, and even physical illness, leading to higher sick leave rates and disengagement.

5. 39% of Kiwis Are Concerned About Retirement Savings

Source: Public Trust, 2023

Stats NZ projects that by 2028, New Zealand will have over 1 million people aged 65 or older. Yet, 39% of Kiwis worry they won’t have enough saved for retirement.

Infometrics found that participation rates for 60-64 year-olds increased from 33% in 1987 to 76% in 2023. The trend is similar for 65-69-year-olds, with participation rising from 15% in 1987 to 48% in 2023. With more people working later in life, this will increasingly become an issue for employers to address.

The cost of ignoring financial stress is too high

Employers dismissing financial stress as a “personal issue” are missing a significant opportunity to improve productivity and retention.

The best employers don’t just pay people well—they help them feel financially secure by providing the information, tools, and support to manage their money effectively.

If you want to tackle financial stress at a critical life stage, explore our Financial Baby Prep Program, a personalised 1-on-1 financial coaching service designed to help expecting parents plan with confidence.

Now for the important legal part: The information we provide is general and not regulated financial advice for the purposes of the Financial Markets Conduct Act 2013. Please seek independent legal, financial, tax or other advice in considering whether the content in this article is appropriate for your goals, situation or needs. The information in this article is current as at 31 March 2025.