- The Centre for Personal Financial Wellbeing has released a rapid evidence review on the intricate relationship between financial wellbeing and physical health
- The study looks at the correlation between health and financial stability accounting for socio-economic factors
- It found that poor physical health affects financial wellbeing, and vice versa, exacerbating socio-economic health inequalities.
The Centre for Personal Financial Wellbeing at Aston University, in collaboration with the Money and Pensions Service (MaPS), has released a rapid evidence review on the complex relationship between financial wellbeing and physical health.
The study, focusing on UK-based evidence, looks at the correlation between health and financial wellbeing, accounting for socio-economic factors.
In line with wider evidence, the review highlights that socio-economic status significantly impacts health outcomes. Individuals from lower socio-economic backgrounds are more likely to experience poor health and reduced lifespans due to poverty and deprivation.
The evidence found that poor physical health can strain financial resources through direct and indirect costs, affecting employment and access to financial services. For instance, chronic illnesses can lead to increased medical expenses and reduced earning potential, further exacerbating financial challenges.
On the other hand, poor financial wellbeing can also put pressure on physical health, as experiences of financial stress or instability directly affects health and limits health-supporting behaviours. For instance, people with lower financial resources are less likely to be able to exercise regularly, eat well or access the healthcare that they need.
Professor Andy Lymer, director of the Centre for Personal Financial Wellbeing at Aston University, said:
“Aston University’s Centre for Personal Financial Wellbeing remains committed to advancing our understanding of the interplay between financial wellbeing and health. These reviews are crucial steps towards informing policy and interventions to improve the overall wellbeing of individuals in our society.
“These reviews shed light on how socio-economic context, health costs and financial stress intertwine and influence each other, underscoring the importance of addressing socio-economic disparities.
Dr Hayley James, senior research fellow in the Centre for Personal Financial Wellbeing at Aston University, said:
“Financial stress and precarity can negatively affect physical health by increasing stress levels and limiting health-supporting activities, including access to health services.
“We need to develop a more nuanced understanding of the relationship between financial wellbeing and physical health to be able to counter these inequalities through targeted interventions.
“We recommend longitudinal studies incorporating diverse groups based on health status, socio-economic status and age as well as comprehensive measures covering various aspects of health and financial wellbeing, including both objective and subjective factors.
“There is a need for rigorous testing of financial wellbeing interventions with control groups and extended follow-up periods.”
You can read the full report here.
- Notes to Editors
More about CPFW
Established in 2021, the Centre for Personal Financial Wellbeing is an interdisciplinary research centre that seeks to get the heart of the causes and consequences of personal and household financial insecurity.
It focuses on providing accessible and timely insights to support a wide range of leaders and decision makers including those in, the financial service industry, third sector organisations, academics as well as the general public.
About Aston University
For over a century, Aston University’s enduring purpose has been to make our world a better place through education, research and innovation, by enabling our students to succeed in work and life, and by supporting our communities to thrive economically, socially and culturally.
Aston University’s history has been intertwined with the history of Birmingham, a remarkable city that once was the heartland of the Industrial Revolution and the manufacturing powerhouse of the world.
Born out of the First Industrial Revolution, Aston University has a proud and distinct heritage dating back to our formation as the School of Metallurgy in 1875, the first UK College of Technology in 1951, gaining university status by Royal Charter in 1966, and becoming The Guardian University of the Year in 2020.
Building on our outstanding past, we are now defining our place and role in the Fourth Industrial Revolution (and beyond) within a rapidly changing world.
For media inquiries in relation to this release, contact Sam Cook, Press and Communications Manager, on (+44) 7446 910063 or email: s.cook2@aston.ac.uk
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