Mid-life employees (ages 44-59) are likely to find their pensions impacted further than other generations, and a significant number may not have saved consistently enough for a comfortable retirement.
The induced stress from this scenario could impair employees’ performance. It is critical that employers step up to provide additional support to this employee tranche, as they look to build for retirement.
Some of the contents of this article were originally delivered during a presentation from Stephanie Twidale, Client Director - Personal Wealth, Hymans Robertson Personal Wealth, at Lockton’s Benefits for Breakfast event, held on March 26, 2025.
What are the challenges facing mid-lifers?
It is likely that mid-life employees have been caught in the gap between the decline of final salary pensions, and the introduction of employer contributions into a defined workplace pension becoming mandatory. Since its introduction in 2012, workplace pension auto-enrolment has made it easier for employees to boost their retirement savings. But today’s 44-year-olds weren’t auto-enrolled until they were 32 years old, and today’s 59-year-olds were already 47 when auto-enrolment became mandatory. Inevitably, this generation hasn’t had enough time to reap the full benefits of auto-enrolment.
In fact, research from Hymans Robertson Personal Wealth shows that a third of people didn’t start saving until the age of 35, and 20% have taken breaks from saving into a pension. Not only does this mean fewer contributions, but it also means less compounding — crucial when it comes to building funds for retirement.
Help is necessary for many members of staff. For example, 15% of mid-life employees have no approach to planning finances. Many of these people would benefit from guidance and discussions around fiscal prudence.
Mid-lifers are also being squeezed on costs, with over a quarter of 40-60-year-olds currently juggling financial responsibilities for both their children and aging parents. With increasing longevity, this figure is likely to rise in the future.
How is this affecting mid-life employees?
All of the above means that mid-life employees face greater challenges when it comes to building funds for retirement. But this isn’t just a problem for the future: anxieties about future quality of life are already impacting the wellbeing of mid-lifers today.
The Hymans Robertson Personal Wealth ‘Mid-life research’ survey, conducted in May 2024, found that a significant number of respondents were concerned about their retirement finances in the future.
In particular, the survey found that:
35% said stress and anxiety over their financial situation in retirement is impacting their mental health
27% are losing sleep over it
22% are avoiding social situations
20% said it affects their ability to work
18% reported it causes friction with their partner, with those aged 40-44 experiencing this more acutely
Why is this a problem for employers?
Businesses may suffer various effects from a workforce that is perpetually anxious about their financial well-being and stability.
Concerns about financial health can manifest in the following issues for employees:
Mentally unwell employees may experience a diminishment in their ability to work for longer periods of time, while maintaining an expected level and quality of output.
Anxiety and depression stemming from money problems can cause employees to suffer from both a reduced quantity and quality of sleep. This could affect the performance of staff in the workplace, an issue that is particularly concerning for employees operating heavy machinery or vehicles.
Outside of the workplace, employees may avoid social situations to preserve cash levels or experience heightened friction with their partners — exacerbating existing stress levels.
By focusing wellbeing budgets on mental and physical wellbeing, and less so on financial wellbeing, employers may be failing to address the primary cause of stress among their employees. This can create a vicious cycle.
Supporting your mid-life staff with a financial ‘health check’
Managers should consider their employees will have different expectations and be receptive to different forms of support. Some individuals will primarily seek human assistance, while others will search for digitally-based information.
Some workplaces may suffer from an ‘advice gap’ and appropriate and valuable assistance must be offered to fill this space. Organisations should look to take the opportunities presenting themselves to help their staff and build their financial knowledge. Typically, each organisation could look to implement various interventions at different levels of personalisation. If support offered is personalised, this could drive higher levels of engagement.
We recommend employers offering the following services for their employees:
Wellbeing workshops
Interactive webinars, workshops, and seminars that cover life’s big events and challenges for your entire workforceOne-to-One guidance
Consultations with a financial expert in a safer and more private context that can help employees with FAQsFinancial coaching
Dedicated coaching to help employees understand their options and set goals, with ongoing supportFinancial planning
Regulated advice from qualified financial professionals who are licensed to help employees make and implement pensions, investments, and financial planning decisions
Future events with Lockton
To register your interest for our next People Solutions event, 'Benefits for Breakfast: Back to Basics', on Tuesday 1 July, please follow this link. (opens a new window)
Additionally, visit our People Solutions (opens a new window) page for further insights.
