Marvin OnumonuPepper Money’s Specialist Lending Study for 2025/26 found that 5.5 million UK adults took on side hustles in the past three years due to financial stress.
The study found this was most common among younger people, with 19% of Gen Z and 15% of millennials starting a side hustle.
Among Gen X, this was 6%, for boomers 3%, and just 1% for the silent generation.
Across all age groups, 10% of adults had taken on extra work.
The study also found one third of UK adults said their financial position was impacting their mental health.
This rose to 47% among millennials and 44% among Gen Z.
Among those who became self-employed in the past three years, 54% said their financial position affected their mental health.
Gen X saw 32% reporting an impact, while boomers were at 15%, and the silent generation at 4%.
Financial stress has led to 2,050,000 workers in the UK taking time off work, resulting in 8.4 million days lost and costing the economy £860m each year.
Among those who missed work due to financial stress, 31% took more than five days off.
Additionally, the study found that 12% of adults aged 18 to 24 missed work due to financial stress, while among those aged 25 to 34 and 35 to 44, the figure was 9%.
For the 45 to 54 age group, it was 8%, and for those aged 55 and over, just 1%.
Across all respondents, 6% reported missing work for this reason.
