Younger workers are significantly less likely to feel on track with their financial goals, highlighting a widening generational gap in savings and retirement confidence, according to research from WEALTH at work.
The survey of 2,000 UK workers found just 17 per cent of Millennials believe they are on track financially, compared with 35 per cent of Baby Boomers, raising concerns for employers and advisers around long-term financial resilience and retirement outcomes.
Gen X respondents also showed caution, with 20 per cent feeling on track, while Gen Z were slightly more positive at 22 per cent.
The research also found that around 31 per cent of workers feel they are making progress but need more support, while 21 per cent are unsure about their financial position, with uncertainty most common among Gen X, Gen Z and Millennials.
According to the findings, younger workers face greater barriers to saving regularly, including insufficient disposable income and uncertainty over suitable financial products.
Millennials were most likely to cite low income as a barrier, while Gen Z reported greater difficulty forming consistent saving habits and navigating the complexity of savings decisions.
Meanwhile, 40 per cent of Baby Boomers said they face no difficulties saving regularly.
WEALTH at work says the findings underline the importance of workplace financial education in improving long-term financial outcomes, particularly as cost-of-living pressures persist.
WEALTH at work director Jonathan Watts‑Lay says: “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.
“Older generations, and Baby Boomers in particular, generally feel more positive about their financial future, which suggests they have accumulated sufficient financial assets. Many of them have also benefited from lower housing costs and more generous company pension schemes over the course of their working lives.
“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. These benefits range from savings vehicles such as pensions, ISAs and share schemes through to offering discounts in areas such as the weekly shop through to larger priced items like computers and other electronics.
“Helping people understand topics such as budgeting, debt management, workplace savings, pensions and long‑term retirement planning can make a massive difference. Financial education needs to be available throughout people’s working lives, starting early, to ensure all generations can build financial resilience and a brighter future.”
