Marvin OnumonuNew research from WEALTH at work found a clear generational divide in how people feel about savings and retirement planning.
The study showed only a fifth (20%) felt on track to meet financial goals.
Less than a fifth (17%) of Millennials said they were on track, while over a third (35%) of Baby Boomers felt confident.
One in five (20%) Gen X workers felt on track, with Gen Z faring slightly better at just over a fifth (22%).
31% said they were making progress but needed more support.
Over a third of both Millennials and Gen Z said this applied to them, compared to less than a fifth (18%) of Baby Boomers and more than a quarter (29%) of Gen X.
More than one in five (21%) said they were unsure about their financial future.
This was a consistent feeling across Gen X (22%), Gen Z (22%) and Millennials (21%), but fewer Baby Boomers (14%) said the same.
Over half (53%) of Millennials said they didn’t have enough spare income, and nearly a fifth (19%) found financial products confusing.
Gen Z struggled most with starting a savings habit (29%).
Over one in five Gen Z (21%) found savings complicated and said they didn’t have time to look into it (18%).
Two-fifths (40%) of Baby Boomers said they had no issue saving regularly, compared to around a quarter of Gen X (26%) and just over one in 10 Gen Z (14%) and Millennials (12%).
Jonathan Watts Lay, director at WEALTH at work, said: “While our research found that 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.”
Watts Lay added: “Older generations, and Baby Boomers in particular, generally feel more positive about their financial future, which suggests they have accumulated sufficient financial assets.
“Many of them have also benefited from lower housing costs and more generous company pension schemes over the course of their working lives.
“Over successive generations the burden of risk and responsibility has shifted to individual workers.”
He said: “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.
“These benefits range from savings vehicles such as pensions, ISAs and share schemes through to offering discounts in areas such as the weekly shop through to larger priced items like computers and other electronics.”
He added: “Helping people understand topics such as budgeting, debt management, workplace savings, pensions and long term retirement planning can make a massive difference.
“Financial education needs to be available throughout people’s working lives, starting early, to ensure all generations can build financial resilience and a brighter future.”
