UK Employers Lag as Income Protection Demand Triples with Age

Event summary

  • Demand for income protection among UK employees triples from 4% (ages 20-29) to 12% (ages 50-59), per Gallagher data.
  • Only 24% of employers offer income protection, revealing a benefits gap.
  • Holiday trading remains the top benefit across all age groups, with uptake rising from 19% to 24%.
  • Employee critical illness insurance selection grows from 9% (ages 20-29) to 15.6% (ages 50-59).
  • Analysis based on 65,000 UK employees at 25 companies using Gallagher Guide platform.

The big picture

Gallagher's data reveals a generational shift in UK employee benefits preferences, moving from lifestyle perks to financial protection as workers age. This trend highlights a strategic misalignment between employer offerings and employee needs, particularly for income protection. The findings suggest employers risk falling behind in workforce retention and satisfaction if they fail to modernize benefits strategies to reflect evolving life stages and financial responsibilities.

What we're watching

Benefits Strategy Alignment
Whether UK employers will adjust benefits packages to match aging workforce priorities, particularly around financial security.
Flexibility Demand
The pace at which holiday trading and other flexible benefits expand as core workforce perks.
Protection Benefits Growth
How quickly income protection and critical illness offerings increase among UK employers.

Related topics

Insurance