Generational divide in financial wellbeing highlights growing role for employers 

New research from WEALTH at work has revealed a widening generational divide in financial resilience across the UK workforce, with younger employees facing greater barriers to saving and long-term financial planning. 

The study, based on a survey of 2,000 UK workers, found that only 20 per cent of respondents feel on track to meet their financial goals, with Millennials the most pessimistic at 17 per cent. In contrast, 35 per cent of Baby Boomers said they feel on track, highlighting a clear gap in financial confidence across age groups. 

Gen X workers also reported concerns, with just one in five (20 per cent) saying they are on track, while Gen Z performed slightly better at 22 per cent, though still reflecting low overall confidence. 

The findings point to a broader issue around financial wellbeing in the workplace, particularly as economic pressure and the cost-of-living squeeze continue to impact disposable income. 

Barriers to saving were significantly higher among younger generations. More than half of Millennials (53 per cent) said they do not have enough spare income to save, while Gen Z respondents were most likely to say they struggle to build consistent savings habits (29 per cent). They were also more likely to find savings complicated (21 per cent) or lack the time to engage with financial planning (18 per cent). 

By comparison, two-fifths (40 per cent) of Baby Boomers said they experience no difficulties saving regularly, underlining the structural differences in financial stability between generations. 

The research also found that 31 per cent of workers say they are making progress but need more support, while 21 per cent are unsure about their financial position altogether. 

Jonathan Watts-Lay, director at WEALTH at work, said: “While our research found that there are people of all ages who are concerned about their financial future, younger generations are particularly pessimistic. This reflects the challenges that many younger people face in an uncertain economic climate that is squeezing disposable incomes, as household budgets and living costs continue to rise. It creates long-term risks of inadequate saving pots, low pension contributions and higher financial anxiety.” 

He added: “Over successive generations the burden of risk and responsibility has shifted to individual workers. That is why financial education is key to helping people improve their financial future, through tailored guidance and support. This is especially relevant in the workplace, where many employers offer a range of benefits which can help with securing a better financial future.” 

The findings reinforce the growing importance of financial wellbeing as a core pillar of workplace health. As more employees struggle with financial stress, the impact on mental health, productivity and engagement is becoming harder for employers to ignore. 

Separate research from Mintel found that 52 per cent of people are interested in further education on retirement and pensions, suggesting demand for support is high but not yet being met effectively. 

For employers, the challenge is not just offering benefits, but ensuring employees understand and engage with them. Financial education, delivered consistently across different life stages, is emerging as a key lever to improve long-term outcomes. 

The research points to a shift in expectations, with workplace wellbeing increasingly encompassing financial resilience alongside physical and mental health. 

As organisations look to support a multi-generational workforce, targeted and accessible financial education is likely to play a central role in improving both individual wellbeing and overall workforce performance.