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New research reveals generational divide in savings and retirement planning.
17th April 2026
New research from financial wellbeing experts WEALTH at work, conducted among 2,000 UK workers, has uncovered a stark generational divide in people’s financial resilience and outlook.
The findings highlight the pressures bearing down on successive generations – with potential implications for employers and the long‑term financial wellbeing of millions of people.
Against this backdrop, and a continuing cost-of-living squeeze, WEALTH at work Director Jonathan Watts‑Lay believes the need for greater financial education in the workplace is more critical than ever to help people to improve their financial future.
Many people are pessimistic about their financial future
The research shows a clear divide between the generations, with some younger people feeling particularly uncertain about their financial future compared to older workers:
- Only a fifth of respondents (20%) said they feel on track to meet their financial goals. However, Millennials (those born between 1981 and 1996) were the most pessimistic, with less than a fifth (17%) of Millennials saying they are on track.
- This is in stark contrast to Baby Boomers (those born between 1946 and 1964) who show the highest levels of confidence, with over a third (35%) on track.
- Gen X (those born between 1965 and 1980) also expressed concerns, with only one in five (20%) feeling on track, suggesting an unease among this generation as they approach retirement.
- Meanwhile, Gen Z (those born between 1997 and 2012) fared slightly better, with just over a fifth (22%) saying they feel on track to meet their financial goals.
- Elsewhere in the survey, almost one in three respondents (31%) said they were making progress but could do with more support. Over a third of both Millennials (35%) and Gen Z (34%) said this is how they feel about their financial future. This compares to less than a fifth of Baby Boomers (18%) and more than a quarter of Gen X (29%).
- Concerningly, more than one in five respondents (21%) said they are not sure where they stand when it comes to their financial future. This was a consistent feeling held by more than a fifth of Gen X (22%), Gen Z (22%) and Millennials (21%). However, in comparison, Baby Boomers felt more confident with around one in ten (14%) feeling this way about their financial future.
Millennials and Gen Z facing greater obstacles when it comes to saving regularly
In response to a separate multiple-response question, respondents were asked:
‘What – if anything – makes it difficult for you to save regularly’:
- Millennials ranked highest for barriers such as ‘I don’t have enough spare income’ (53%) and ‘I’m unsure which products are right for me’ (19%).
- Meanwhile, Gen Z ranked highest for ‘I find it hard to embrace a savings habit’ (29%). This compares to one in ten Gen X (10%) and less than one in twenty Baby Boomers (4%).
- Gen Z also ranked highest for barriers such as ‘Savings feel too complicated’ (21%), and ‘I don’t have the time to look into how best to do it’ (18%).
- Across the survey, Baby Boomers reported fewer obstacles, with two-fifths (40%) saying they have ‘no difficulties in saving regularly’. This compares to around a quarter of Gen X (26%), and more than one in ten Gen Z (14%) and Millennials (12%).
Commenting on the findings, Jonathan Watts‑Lay, Director, 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.
“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.”
About the survey: Research for WEALTH at work was carried out by Opinion Matters throughout 25/02/26 – 04/03/26 amongst a panel of 2,000 UK workers, aged 16+.