Two in five UK adults say their finances have harmed their mental health over the past year, with one in 10 worried about meeting mortgage repayments.

Research by St. James’s Place (SJP) found that 40% of adults believed their financial position had negatively affected their mental health, while 38% reported an impact on their physical health.

The findings come as households continue to face living-cost pressures, market volatility and wider economic uncertainty.

MORTGAGE AND HOUSEHOLD COST CONCERNS

Over the next 12 months, 29% of adults are worried about keeping up with energy bills and 25% are concerned about rising food costs. A further 19% fear they are not saving enough to feel financially secure, while 10% are concerned they will not have enough money to meet their mortgage repayments.

Money worries are also affecting daily life. More than a fifth of adults, at 22%, said their financial position had damaged their mood, while 14% felt anxious about going out and seeing other people.

Some 17% said financial pressure had affected their appearance, causing more grey hair or wrinkles. A further 16% reported buying or preparing cheaper and less healthy food, while 15% said money concerns were causing them to lose sleep.

YOUNGER ADULTS UNDER GREATER STRAIN

The financial strain was most pronounced among younger adults. More than half of 18- to 34-year-olds, at 54%, said their finances had negatively affected their mental health, compared with 48% of those aged 35 to 54 and 22% of people aged 55 and over.

Almost half of 18- to 34-year-olds, at 49%, reported an impact on their physical health. This compared with 46% of 35- to 54-year-olds and 23% of those aged 55 and over.

LACK OF SAVINGS LEAVES HOUSEHOLDS EXPOSED

The annual Financial Health Report, based on a survey of 6,000 people across the UK, found that 38% had less than £10,000 in savings, investments and physical possessions. One in seven, or 14%, said they had no wealth at all.

One in five UK adults described themselves as struggling financially, while 28% did not feel able to cope with an unexpected financial shock.

Fewer than four in 10 adults, at 38%, had a financial plan. Among those who did, 76% felt financially resilient, compared with 52% of those without a plan. Those with a plan were also more likely to describe themselves as financially comfortable, at 51% compared with 29%.

Alexandra Loydon, group advice director at St. James’s Place, said: “Over the last five years, households have faced successive crises and challenging economic conditions, from higher mortgage costs to rising energy and food bills.

“Our research shows the toll this prolonged period of uncertainty is taking on people’s mental and physical health and financial resilience, with younger adults feeling the strain particularly acutely.

“Many people remain worried about their finances looking ahead to the next 12 months, but there are practical steps that can help. Understanding your financial position and putting a clear plan in place can help build resilience and give people greater confidence about the future.

“Our research shows those with a financial plan are more likely to feel financially comfortable and able to cope with financial shocks.

“Finances can be a difficult topic to discuss, but people should not feel they have to manage these concerns alone.

“Seeking support from family and friends, debt advice charities, financial advisers or mental health professionals can provide valuable guidance and reassurance during difficult periods.”