New analysis from Gallagher, the global insurance and risk management consultancy, shows that as UK employees age, their benefit selections evolve from lifestyle focused offerings to protection and health-focused benefits in later life.
The data highlights a gap between what employees want from their benefits packages, and what is offered by employers. Demand for Income Protection triples from 4% among employees aged 20–29 to 12% among those aged 50–59.
However, less than a quarter (24%) of employers currently offer Income Protection to their workforce.
The analysis was drawn from the benefit selections that approximately 65,000 UK employees at 25 companies made on Gallagher Guide, an all–in–one employee benefits platform. Gallagher pairs this innovative technology with our expert, strategic consulting to help HR teams work smarter and deliver a more seamless, engaging benefits experience. By uniting intuitive benefits selection, intelligent automation and real–time insights, Gallagher Guide’s Benefits platform helps simplify complex HR tasks and supports employees in making more confident benefit decisions.
Hidden demand for under-offered protection benefits
The findings highlight a mismatch between what employees value in a benefits package and what is currently offered by employers.
Employee personal accident insurance features in the top ten selected benefits across all age groups. However, the benefit is offered by just 12% of employers working with Gallagher.
From lifestyle perks to protection for older employees
Benefits preferences shift significantly over the course of a career. Gallagher’s data shows that in their 20s, employees tend to favor lifestyle-led benefits, with travel insurance ranking as a top selection.
From age 30 onwards, priorities begin to change in line with evolving life stages and financial responsibilities.
By their 40s, protection benefits take center stage, with employee critical illness accounting for more than 22% of selections and overtaking traditional lifestyle perks.
In later career stages, the focus sharpens further on financial security, with income protection rising to 12% of selections among employees aged between 50 and 59.
Notably, employee critical illness insurance was selected by 9% of younger employees aged between 20 and 29. In comparison, uptake of the same benefit rose to 15.6% among employees aged between 50 and 59.
Top three most popular benefits for each age group
|
Age group |
1st most popular benefit |
% |
2nd most popular benefit |
% |
3rd most popular benefit |
% |
|
20–29 |
Holiday Trading |
18.88 % |
Dental Insurance |
12.97 % |
Travel Insurance |
9.07 % |
|
30–39 |
Holiday Trading |
19.32 % |
Employee Critical Illness |
19.30 % |
Dental Insurance |
18.33 % |
|
40–49 |
Holiday Trading |
22.39 % |
Employee Critical Illness |
22.32 % |
Private Medical Insurance |
18.82 % |
|
50–59 |
Holiday Trading |
23.94 % |
Private Medical Insurance |
19.52 % |
Dental Insurance |
18.58 % |
Time flexibility is the one benefit every generation agrees on
Holiday trading is the most popular flexible benefit across every age group, reflecting the workforce’s ongoing interest in flexible working arrangements.
Uptake rises with age, increasing from 19% among employees aged 20–29 to 24% among those aged between 50 and 59, suggesting that flexibility becomes more valuable as an employee’s personal and professional responsibilities grow.
While holiday trading is available through 72% of Gallagher clients, employers may stand to improve their workforce’s engagement with their employee benefits package by expanding access to this highly sought perk.
Alistair Dornan, Gallagher’s Benefits & HR Consulting Division’s Managing Director of UK Benefits, said:
“As people move through their lives and careers, it’s natural that their priorities change. Early career employees often place greater value on lifestyle led benefits such as holiday trading or gym membership. As responsibilities grow, protection benefits—particularly income protection and critical illness cover—become increasingly important.
“Employers shouldn’t rely on long held assumptions about what their workforce wants. Our data shows clear, evolving patterns in employee behavior, and organizations that use these insights can design benefits that genuinely align to life stages and real employee needs. My message to employers is simple: let the data guide your decisions. Use insight to modernize your benefits strategy, close the gap between what you offer and what your people value, and strengthen financial resilience and long-term retention across your organization.”
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