A generational divide in people’s financial resilience and outlook has been uncovered by new research from WEALTH at work, with some younger people feeling particularly uncertain about their financial future compared to older workers.

The survey of 2,000 UK employees found that less than one-fifth (17 per cent) of Millennials said they were on track to meet their financial goals, compared to over a third (35 per cent) of Baby Boomers.

Similarly, over a third of Millennials (35 per cent) and Gen Z (34 per cent) reported they were making progress but could do with more support, compared to 18 per cent of Baby Boomers and 29 per cent of Gen X.

When asked what made it difficult to save regularly, Millennials were most likely to say they lacked spare income or felt unsure which products suited them, while Gen Z most often reported struggling to build a savings habit and finding saving too complicated or time-consuming.

Baby Boomers faced far fewer barriers overall, with two-fifths (40 per cent) who had no difficulty saving regularly, compared with much lower proportions of Gen X (26 per cent), Gen Z (14 per cent) and Millennials (12 per cent)

WEALTH at work, director, Jonathan Watts‑Lay, commented: “While our research found 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 noted that older generations were generally more optimistic because many have built up stronger financial reserves over time.

They have also benefited from lower housing costs and more generous workplace pension schemes during their careers, he argued.

Discussing the importance of financial education, Watts‑Lay 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.”

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