Employees in their 40s and 50s are facing increasing financial pressure, with many choosing not to discuss the impact at work, according to new research. The findings highlight how midlife financial strain is affecting wellbeing, performance and retention, while remaining largely hidden from employers.
The study, by financial services company Octopus Money, found that 59% believe financial stress is higher in midlife than in their 20s. This pressure is driven by competing demands, as disposable income is split between supporting adult children and assisting ageing parents who require additional care.
Despite the scale of the issue, only 29% say they would feel comfortable discussing financial pressures with their employer or colleagues. At the same time, almost one in five report that these concerns are already affecting their wellbeing or performance at work.
Financial Pressures and Family Responsibilities
The data shows that those supporting both adult children and ageing relatives face combined annual costs of £3,498. Financial support for children remains common, with 92% continuing to contribute into adulthood and nearly one in five believing their children may never become fully financially independent.
At the same time, almost a third (30%) say they also provide financial support to parents or parents-in-law. The cumulative effect places sustained pressure on household finances, particularly as other costs continue to rise.
The research identifies age 43 as the point at which financial pressure is most acute. At this stage, many employees are also at a more senior point in their careers. To manage costs, 39% have used savings, 33% have reduced everyday spending and 7% have delayed retirement.
Analysis of nearly 13,000 Octopus Money customers indicates that financial concern remains consistent across income levels. 37% of those earning under £50,000 are worried about their financial future, compared with 29% of those earning between £50,000 and £100,000. Similar patterns are seen across sectors, with roughly a third of workers in financial services and legal reporting concerns, suggesting that financial stress is not limited to lower income groups.
Hidden Financial Stress: the Risks for Retention
For employers, the findings highlight a potential retention risk. Almost half of employees (48%) say they would consider changing jobs to earn more if it helped them better support their family financially. This comes at a time when retaining experienced employees remains a priority for many organisations.
“The impact of supporting two generations at once is not just financial, but emotional. What strikes me most is that it is affecting performance at work, yet few would feel comfortable raising it with their employer,” said Tom Francis, Head of Personal Finance at Octopus Money.
“That silence is costing both employees and businesses. We see that too many employees are in the dark about the money basics, starting with something as fundamental as how much they have in their pension. Financial wellbeing support at this stage of life should not be seen as a perk. For many, it is the difference between staying in control of their future plans and falling behind at a point when the pressure is coming from all sides.”
Gethin Nadin, Chief Innovation Officer at Benifex, added, “Financial stress is a well-documented cause of lost productivity, poor decision-making and unwanted attrition. Yet most organisations are still treating it as a personal problem for employees to solve on their own time.
“This research shows that the pressure is landing hardest at exactly the point in people’s careers when businesses need them most. HR leaders who are serious about performance and retention cannot afford to ignore what is happening in their employees’ financial lives outside of work.”