News 18 May 2009

 

Financial capability and wellbeing - new research

Last week we published Occasional Paper 34, which indicates that an improvement in financial capability leads to an improvement in psychological well-being. The results of the research suggest that moving from low to average levels of financial capability:

  • increases psychological wellbeing by 5.6%;
  • increases life satisfaction by 2.4%; and
  • decreases anxiety and depression by 15%

The 2.4% increase in life satisfaction is 12 times bigger than the impact of earning an extra £1000 a year.

Read the full paper:

Financial Capability and Wellbeing [PDF]