Article What is financial wellbeing and why is it important for advisers?

Financial wellbeing has become a bit of a hot topic.

Everyone, it seems, is talking about it. Financial institutions, healthcare providers, charities, and yes: Aegon, too.

It feels like the term is everywhere. But like anything that becomes widely used, we’re at risk of losing sight of what it means.

So, let's take a step back and ask: what is financial wellbeing – and why is it important? Because depending on who you ask, you could get very different answers.

To some financial advisers, the term might come across as an excuse to swap out rigour and real planning for a ‘candles and cushions’ concept.

And to the average person on the street, or your clients? Let’s be honest, it’s probably still a phrase they’ve never heard of. Many people might not even put ‘finances’ and ‘wellbeing’ in the same sentence.

But if we want to live longer, healthier, more secure lives, we need to get clearer on what it actually means – as well as why it’s important.

So, what is financial wellbeing?

Financial wellbeing is the confidence, clarity, and capacity to manage, spend and earn money in a way that supports how you want to live your life. It’s about spending for joy today, while being financially responsible for tomorrow – all with your future self in mind.

It’s tricky to fully define what financial wellbeing is because it’s personal to you – and your life. But that’s a good starting point.

As we said in our financial wellbeing flipbook, the balance in your bank account matters – but so does the balance in your head.

What financial wellbeing is not

Now, let’s attempt to define what financial wellbeing isn’t.

Financial wellbeing is not the dopamine hit you get from saving 15% on a flat-screen TV.

It’s not hitting your ISA target, but still losing sleep at night. Nor is it another product, perk, or policy.

It’s not being rich, or frugal. It’s not feeling smug because you cut out your daily takeaway coffee habit. And financial wellbeing is most definitely not ‘a vibe’.

Why is financial wellbeing important?

Managing money is not just a maths problem, it’s about psychology.

Financial wellbeing is crucial as it could play a huge role in our – or your client's – overall peace of mind and happiness. When we have our finances in order, we generally feel more secure and less stressed about unexpected expenses or retirement planning.

It empowers us to make choices that align with our values and goals – whether that's travelling, starting a family, or investing in personal development.

Plus, managing your money wisely could open doors to opportunities that enrich your life, making financial wellbeing something we all should care about.

And that brings us to Money:Mindshift

We’re generally living longer lives.¹ That’s a gift, but it’s also a challenge as it means the way we live, work and retire is evolving. Our life goals and priorities are changing.

A longer life means more transitions, more complexity, and more decisions. Career changes. Caring responsibilities. Blended families. New phases. New pressures.

Money:Mindshift is our new campaign to help people make better financial trade-offs across these longer, more varied lives. Not by handing them a one-size-fits-all answer, but by helping them think more clearly, feel more confident, and act more intentionally.

Because financial wellbeing is how we think, feel and act about money across today, tomorrow and our whole lives. It’s not a buzzword. It’s the ability to use money as a tool – not just to survive, but to shape a life that feels good.