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The UK may no longer be in a cost-of-living crisis, but ongoing high bills are still causing problems for many people.
Our 2025 Financial Resilience Report reveals a complex picture of recovery. While inflation has eased and interest rates have fallen, many people remain financially vulnerable. For employers, this presents both a challenge and an opportunity: to support their employees and help them build long-term financial resilience.
The state of financial resilience
Our report, based on a nationally representative sample of over 4,000 UK adults, shows that although some indicators have improved, many households are still under pressure. The research was carried out in February 2025 when inflation stood at 2.8% (it has since risen to over 3.5%), and the Bank of England base rate was 4.5% (it now stands at 4%). Yet, essentials like energy, food, and housing remain significantly more expensive than they were before the cost-of-living crisis began.
Half of UK adults say their financial resilience — the ability to cope with a financial shock — has been affected in the year to February. One in five adults has less than £100 in cash savings, leaving them exposed to unexpected expenses. While slightly fewer people now describe themselves as being in financial crisis, the number remains concerning.
Who's most at risk
Singles
Singles are particularly vulnerable. These individuals are more likely to be overdrawn or have no money left at the end of the month. Their average savings are significantly lower than those who are married, and they are less likely to own property or have substantial pension pots. With only one income to rely on, they are disproportionately affected by rising costs.
Mid-life professionals
Mid-life professionals, aged 30 to 49, are also under strain. Despite having the highest average personal incomes, they report the lowest levels of savings of all age groups and are most likely age group to be in or near financial crisis. Many in this group are juggling mortgages, childcare and other financial responsibilities, leaving little room for savings or retirement planning. At a time when people could be building up their pensions, engagement is low, with 70% unaware of the value of their pension pots.
Higher-income households
Even higher earners are not immune. Nearly half of those in higher-income households, earning £50,000 to £150,000 each year, say their financial resilience has been affected in the last 12 months by higher costs and bills. More in this income group prioritise maintaining their current lifestyle over increasing savings than the sample as a whole, and more than half lack a plan to manage rising bills. While this group has a higher level of discretionary income, they are not immune to financial shocks.
Those nearing retirement
Those nearing retirement, aged 55 to 66, are increasingly dipping into their savings and pensions to cover everyday costs than the sample as a whole. While this group tends to have more assets and higher pension balances, they report a moderate level of confidence in their retirement readiness, suggesting uncertainty remains. Many are concerned about whether their savings will be sufficient, especially as they transition out of the workforce.
Supporting your employees
Supporting employees in building financial resilience presents a valuable opportunity for employers — not only to empower their workforce but also to foster greater loyalty, engagement, and productivity within the organisation.
By helping your employees strengthen their financial wellbeing, you can create a more stable, motivated staff who are better equipped to face challenges, ultimately benefiting both individuals and the business as a whole.
Here are five key actions you could take:
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Promote financial education and planning
Offer workshops or webinars on budgeting, saving, and retirement planning. Encourage employees to use government tools like the State Pension forecast, those offered by MoneyHelper, or our financial wellbeing service to better understand their financial position.
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Enhance pension engagement
Communicate clearly about workplace pension benefits. Promote contribution matching schemes and auto-enrolment options. Provide access to financial advisers or digital tools. Our communications toolkit offers a range of engagement materials to help you tell your employees about the benefits of their pension and the tools and resources available to them to assess their retirement readiness.
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Support short- term financial resilience
Point employees towards our guides and tools to help them understand the support that’s available to them, the importance of emergency savings, and the basics of short-term financial resilience. Remind them to claim any state benefits they qualify for, and direct those facing hardship to resources like Turn2Us for help with benefits and grants.
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Tailor support for vulnerable groups
Recognise the unique challenges faced by single-adult households and mid-lifers. You may want to consider offering flexible benefits that reflect diverse needs — such as mental health services, or income protection.
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Review and communicate protection benefits
Ensure employees understand the value of life, critical illness, and income protection cover. Highlight how these benefits can provide a safety net during times of crisis.
Looking ahead
Our 2025 report shows that while the crisis phase may be behind us, financial resilience is not recovering at the rate we might have hoped.
Employers have a pivotal role to play — not only in offering competitive compensation but in fostering a culture of financial wellbeing that supports employees today and prepares them for tomorrow.
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 4003 adults. Fieldwork was undertaken between 26th February - 5th March 2025. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).