Employees earning more than £100,000 a year are more likely to worry about money than those on average salaries, according to new research that raises questions about financial wellbeing in the workplace.
A survey from digital bank Revolut found that eight in 10 people earning above the six-figure mark expressed concern about their financial health. By contrast, three-quarters of those earning between £35,001 and £45,000 said they were worried about money.
The findings challenge assumptions that higher pay automatically brings greater financial security, and the data suggests that financial wellbeing initiatives need to be broad-based rather than targeted only at those on the lowest incomes.
Salaries under pressure
The report comes against the backdrop of rising living costs and higher taxes. Government figures show inflation was running at 3.8 percent in August, meaning that £100,000 today is worth the equivalent of around £81,000 in 2021.
At the same time, tax rules mean employees lose £1 of their personal allowance for every £2 earned over £100,000. That pushes the marginal tax rate above 60 percent for many high earners and erodes the headline value of salaries.
HM Revenue & Customs data obtained by consultancy RSM through a freedom of information request shows that the number of taxpayers earning more than £100,000 increased by 16 percent in the 2022/23 tax year to 1.35 million. Yet the experience of many in this bracket appears less secure than the pay level might suggest.
Graduates also face the added burden of student loan repayments, with nine percent of income deducted for undergraduate debt and six percent for postgraduate debt once salary thresholds are met. For those on higher earnings, this can amount to thousands of pounds in additional annual outgoings.
Wellbeing and financial stress
The study found that more than a quarter of people in the UK do not include financial wellbeing when they think about overall wellness. This is despite seven in 10 respondents agreeing that their financial situation has a direct impact on their mental health.
The figures suggest a mismatch between awareness and action, raising concerns for employers who are increasingly expected to support staff in managing both financial and mental wellbeing. The Chartered Institute of Personnel and Development has previously argued that financial stress can reduce productivity, increase absence and damage engagement at work.
Consumer data from Which? adds to the picture. It recorded what it described as an “alarming” decline in confidence over the past year, amid concerns about the economy. Confidence fell 31 points between May and July 2024 and the same period in 2025, from an average of minus nine to minus 40.
Outlook on rates and inflation
Although inflation has fallen from the double-digit levels seen during the energy crisis, pressure on household budgets remains. Many economists expect the Bank of England to hold interest rates at the current four percent until at least 2026, meaning that borrowing costs are unlikely to ease in the short term.
Higher mortgage and loan repayments have combined with elevated prices for food, utilities and other essentials, leaving even those on top salaries feeling the strain. For employers, it complicates efforts to motivate and retain staff through pay alone.
Tailoring financial wellbeing support
The findings show the need for organisations to consider financial wellbeing as part of broader workplace strategies. Programmes that provide access to independent financial advice, salary advance schemes, debt counselling or pension guidance have become more common in recent years.
But experts note that financial stress is not confined to lower-income employees. The study data suggests that those at the upper end of the pay scale may be equally vulnerable, albeit for different reasons. Tax thresholds, student debt and inflation can combine to create pressure points that undermine security, even where nominal salaries are high.
Employers seeking to build resilient workforces may therefore need to tailor financial wellbeing support to a range of income levels, experts say. Transparency around benefits, guidance on managing tax changes and practical assistance with savings or investment options could all play a role.
The research also points to a wider change in how people view financial stability. Traditional markers such as reaching a six-figure salary no longer guarantee confidence. Instead, stability is being defined by broader measures such as disposable income, housing security and long-term planning.
