Financial pressures remain widespread well into employees’ peak earning years, with debt and housing costs continuing to weigh on workers across age groups, according to research from Hymans Robertson Personal Wealth.
The study found that 44% of people aged 18 to 60 shared the same financial vulnerability score, challenging the assumption that financial resilience necessarily improves as earnings and careers progress.
Debt emerged as a particular concern among older workers. Some 34% of those aged 40 to 60 described debt as a major financial worry, compared with 27% of 18 to 30-year-olds.
Housing costs are also contributing to financial strain across generations. The research found that 19% of respondents aged 18 to 54 were worried about being able to afford rent or mortgage payments.
Hymans Robertson Personal Wealth said the findings indicated that financial pressures could change rather than disappear as employees move through their careers, with mortgages, family commitments, debt and retirement planning creating different challenges at different stages of working life.
EMPLOYER SUPPORT
The firm said employers may need to reconsider financial wellbeing programmes that assume older or more established employees require less support, particularly where financial pressures could affect long-term retirement planning.
Ollie Le Farge, corporate client manager at Hymans Robertson Personal Wealth, says: “Financial resilience and wellbeing are often assumed to be something that strengthens naturally over the course of a career. These findings suggest that’s not always the case. Financial pressures don’t simply disappear with age, they evolve.”
“Whether it’s managing a mortgage, supporting family members, repaying debt or balancing competing financial priorities, many people continue to face significant challenges well into mid and later career.
“Employers need to respond by helping people build confidence across the areas that matter most to them, from managing debt and short-term savings to housing costs, family commitments and retirement planning.”
Le Farge says financial difficulties carried into later stages of a career could have implications for retirement preparation.
“What is particularly striking by the findings is that employees can reach mid and later career stages carrying financial challenges that may affect their ability to prepare for an adequate retirement.
“The earlier people engage with their finances, and access support that feels relevant to their circumstances, the greater their opportunity to improve long-term financial wellbeing and retirement outcomes.”
“Employers must ensure that their financial wellbeing programmes target key life stressors, whether that’s weathering financial shock by building savings buffers, dealing with debt, or understanding mortgages, wellbeing programmes should reflect this.”
He adds: “Employers have a real opportunity to make a difference. Financial resilience isn’t built overnight. It’s developed through ongoing engagement, informed decision-making and making financial planning part of everyday life.”
“When employees are empowered to take those steps, they are better placed to navigate both expected and unexpected financial challenges. Investing in support that makes a difference benefits the workforce, but can also support higher engagement, improved productivity and a stronger employee value proposition.”
