The ageing workforce is changing the way we consider wellbeing

How the ageing workforce is shifting demographics and what this means for financial wellbeing strategies.

Workplace demographics are undergoing a profound transformation, with five generations now working side by side:

Traditionalists (born before 1945),
Baby Boomers (1946–1964),
Generation X (1965–1980),
Millennials (1981–1996), and
Generation Z (1997 onwards).

As the UK population ages - with nearly one in four expected to be over 65 by 2040 - and more older adults remain in work, employers will need to rethink financial wellbeing strategies to support a multigenerational workforce facing diverse financial, health, and caregiving pressures.

Impact of an ageing workforce

Older employees bring valuable experience, loyalty, and insight, but an ageing workforce also presents challenges - rising health and insurance costs, and more absences linked to chronic conditions - highlighting the need for preventative wellbeing strategies.

Rapid technological change adds complexity, requiring digital upskilling and accessible tools to keep older workers engaged, while also addressing the differing needs and expectations of a multigenerational workforce.

Inclusive leadership is key to uniting these diverse groups.

Meanwhile, the growing “sandwich generation,” juggling childcare and elder care, faces increasing financial and emotional pressure - demanding more flexibility and support.

To stay resilient, employers need inclusive strategies that benefit an ageing workforce and future-proof their organisations.

The shift toward integrated wellbeing

Today’s workforce demands a more holistic approach - where health, financial, and emotional wellbeing are interconnected and addressed together.

Financial wellbeing is closely tied to mental health, job satisfaction, and overall resilience - money worries can lead to stress, burnout, and poor health, affecting both productivity and retention.

Gen X faces distinct challenges: many missed out on final salary pensions and joined auto-enrolment later, leaving them with limited retirement savings.

Combined with rising living costs and the dual burden of caring for children and ageing parents, many are questioning not how comfortably they will retire - but whether they can retire at all.

Younger workers face their own financial pressures, including student debt, high housing costs, and job insecurity.

At the same time, older employees worry about retirement adequacy and access to affordable healthcare.

These pressures span all age groups, impacting wellbeing and workplace performance.

Practical steps for employers

To adapt to workforce and demographic changes, here are six key focus areas for employers to consider:

Understand your data: Develop a data ecosystem to assess people risk, including pensions, healthcare, and employee engagement. Richer data insights can inform targeted interventions and drive smarter benefit design.
Review policies: Consider introducing flexible, hybrid working, reduced or condensed hours, and phased retirement plans. These approaches support work-life balance, particularly for older workers and those with caring responsibilities.
Tailor financial education: Match financial education resources to different age groups, focusing on debt management and savings for younger workers, and retirement planning for older workers. Offering access to tools, coaching and advice helps employees take control of their financial futures.
Promote health and wellbeing: Develop comprehensive health and wellbeing programmes, managing pathways rather than focusing on the end solutions. Prevention, early intervention, and better signposting can reduce long-term health costs and improve workforce resilience.
Personalise benefits: Regularly review and update benefits to cater to the diverse needs of a multi-generational workforce. Hyper-personalisation is the future of benefits, and while the technology is not fully there yet, advances in digital platforms are paving the way for more tailored, relevant experiences for every employee.
Skill mapping: Conduct learning and development reviews to ensure skills are up-to-date and relevant. Cross-generational training and mentoring can bridge knowledge gaps and help employees keep pace with technological change.

Shaping the workforce of the future

The ageing workforce is not a short-term trend - it is a lasting shift that requires thoughtful, inclusive action from employers. Financial wellbeing can no longer be treated as a one-size-fits-all solution.

As people face growing pressures around money, health, and caring responsibilities, supporting employees across all life stages is essential to building a resilient business.

By adapting benefit design, workplace culture, and long-term planning to reflect a multigenerational workforce, organisations can create environments where everyone can thrive.