Latest global financial health pulse: key insights

3 min read

Global financial health pulse: key insights from Q1 2025

The latest financial health pulse offers us a snapshot of how people are managing their personal finances across various regions. The overall financial health score remains stable at 55, and there are encouraging improvements in key areas such as financial learning and planning, suggesting a positive shift in financial behaviors worldwide.

The bigger picture

The financial health of people is often a reflection of both personal habits and broader economic trends. In this quarter, we saw a marked improvement in the ‘Learning’ and ‘Planning’ pillars. These aspects focus on financial education and strategic financial planning, critical components for long-term financial stability. The uptick in these areas suggests that more people are taking a proactive approach to managing their finances, setting clear goals, and looking ahead to secure their financial futures.

Financial health from around the world

While the overall global financial health score held steady, the pulse on financial wellbeing varies significantly by region:

Canada and the US

A tale of two stories - improvement and debt: Both Canada and the US saw notable improvements in financial health this quarter. A strong job market, higher savings rates, and resilient financial markets have provided a boost. However, debt remains a major concern. In Canada, rising household debt, particularly in mortgages and consumer credit, is a growing challenge. Similarly, in the US, consumer debt, including credit cards and student loans, continues to weigh heavily on many households. If you manage employees in these countries, it might be a good time to enhance financial wellbeing programs, with a specific focus on educating people about debt management.

Japan

Struggling amid economic slowdown: On the other hand, Japan is facing a more difficult economic landscape. The country recently slipped into a technical recession, characterized by two consecutive quarters of shrinking GDP. This economic downturn has naturally had a negative impact on personal financial health, highlighting the importance of preparing for financial challenges during uncertain times.

India

A mixed bag: India, with its fast-growing economy, is experiencing mixed financial health. While many sectors continue to perform well, the manufacturing industry has shown signs of weakness. The disparity between sectors underlines the need for individuals to stay informed and flexible in their financial planning, especially in a rapidly changing economic environment.

Top financial topic trends

As individuals around the globe navigate their financial health, certain topics have surged to the forefront in recent months. Here are the top trending areas of interest:

• Travel and leisure: Post-pandemic people have a full appreciation for travel and leisure. People are eager to explore the world again, contributing to the economic recovery of the tourism industry. This suggests a shift towards balancing financial responsibility with the desire for enjoyment and experiences.
• Life after work (retirement planning): As retirement approaches for many, planning for life after work remains a top priority. The focus is on building enough retirement funds to create a comfortable and secure future. This trend emphasizes the ongoing importance of long-term financial planning.
• Mental wellbeing and financial stress: Financial stress is increasingly recognized as a significant contributor to mental health struggles. As a result, individuals are seeking out ways to better manage their finances, not only for practical reasons but also to improve their mental wellbeing. This highlights the interconnections of financial health and overall happiness, a theme that more employees and employers are beginning to recognize.

Looking ahead

Overall, the trends suggest a growing awareness of the need for financial education and planning. As we move forward, the integration of financial wellbeing into both personal and professional lives will likely play an even more significant role in achieving long-term stability and wellbeing. Whether it’s through tackling debt, planning for retirement, or seeking balance in life’s priorities, people are becoming more mindful of their financial health than ever before.

The road ahead is full of both challenges and opportunities, and the global financial health pulse offers valuable insights for employers seeking to improve their people’s financial wellbeing across the globe.

Access the global health pulse - and why not share it with your regional teams?