What does an ageing workforce mean for employers?

The UK workforce is ageing quickly. Over-50s are now the fastest-growing group in employment, and more people are working well beyond traditional retirement ages. We’re heading towards a future where working lives will stretch far longer, and workforces will become increasingly multi-generational. Rising state pension ages, financial pressures and increasing demand for health related support are already transforming the shape of employment in the UK and the changing demands for workplace benefits. 

Why should employers be thinking about demographics now?

An ageing workforce brings huge opportunities for employers but also challenges. They need to be thinking about how to support a workforce where one person is saving for their first home, while another is navigating the complexities of care responsibilities, health issues such as menopause, or extending their working life to secure private medical cover. This means navigating a complex mix of expectations, health needs and financial circumstances across a broad age spectrum. 

How do financial needs differ between generations?

LCP’s financial wellbeing research, which surveys over 10,000 UK employees annually, found that for older workers, priorities typically focus on maximising retirement savings and retaining valuable company benefits like private medical cover – something that can even encourage people to remain in work longer than planned, particularly as NHS waiting times grow. 

For younger generations, the challenges are different: getting on the property ladder, job security, career development and managing debt all weigh heavily. Changing attitudes to work and money, driven by economic pressures and technological change, mean today’s 20-somethings face a very different financial landscape to their parents.

What’s the impact of financial stress in the workplace?

Financial concerns don’t just affect personal bank accounts; they shape performance, engagement and mental health at work. Stress, anxiety, and poor sleep, often triggered by money worries, can sap productivity and morale. Levels of financial stress and anxiety remain higher post-pandemic than during it which emphasises the importance of focusing on these issues. Some cohorts are more resilient than others, and the hardest hit aren’t necessarily the ones you’d predict – those earning between £70,000 and £100,000 per annum have the highest levels of stress and anxiety which includes high levels of borrowing coupled with low emergency savings.

What can employers do to support financial wellbeing?

Financial wellbeing is not just about having enough money. It’s about feeling in control, being able to manage today, cope with the unexpected, and plan for the future you want. This sense of control and confidence is deeply personal, shaped by individual circumstances, values and priorities.

There are three essential things employers can do to support their employees:

1. Better understand your workforce. Gather data, run focus groups, and foster open conversations to uncover the financial pressures people are facing.
2. Build financial knowledge and confidence. From basic money management to pension planning and protection against scams, helping people understand their finances builds capability and resilience.
3. Offer a benefits package that meets diverse needs. Flexible, accessible, and clearly communicated benefits are vital, alongside workplace savings options like ISAs or salary-deducted savings to help employees build financial buffers.

Our report found that one in three employees identifies as having a diverse communication need. Designing financial communications and benefits with inclusivity in mind isn’t just good practice, it benefits everyone, improving clarity and access across the board.

What might the future look like?

Looking ahead, we expect to see the trend continue with even more people working later into life, either through necessity or to maintain social connections and a sense of purpose. Flexible working options and opportunities for older workers to remain engaged, whether through mentoring, consultancy or part-time roles, will be important. Financially and socially, work can be a lifeline, and the most successful organisations will be the ones that embrace that diversity, foster collaboration and prioritise open communication.