Share
Financial resilience continues to be a key challenge for UK households.
While there are signs of recovery following the cost-of-living crisis, our latest research shows that for many people, financial security remains fragile.
Our Financial Resilience Report 2026 shows a mixed picture. 23% of UK adults say they are feeling the pinch financially and 8% are struggling to pay their bills. In addition, 46% say they feel ok for now but are worried about the future, with 45% saying the cost of living has weakened their financial resilience.
For employers, this highlights an important opportunity - to support employees not just through pensions, but through broader financial wellbeing.
Introducing the Financial Resilience Barometer
This year, we’ve introduced the Financial Resilience Barometer – a new way of measuring how financially secure people really are.
Rather than looking at individual factors in isolation, the barometer combines a range of measures, including:
- Short term resilience, such as cash savings and disposable income.
- Long term resilience, including pension savings and confidence.
- Ability to cope with unexpected life events such as illness or loss of income.
By bringing these together, it allows us to track how resilience is changing over time, and where support is most needed.
View transcript
In our latest Financial Resilience Report we’ve reviewed how people across the UK are coping financially, both today, and when it comes to preparing for the future.
Through our research, we’ve looked at the lasting impact of the cost-of-living crisis, and how factors like rising costs, individuals’ ability to save and pay into their pension and financial confidence all come together to shape people’s financial resilience.
This year, we’ve introduced something new - a Financial Resilience Barometer.
The barometer gives a more complete picture of financial resilience in the UK by bringing together a range of factors, from short-term measures like savings and disposable income, to longer-term indicators like pension engagement and confidence. And it’ll help track changes over time.
It also looks at how well people could cope with unexpected life events, like illness or a loss of income, helping us understand not just where people are now, but how resilient they really are overall.
Through our research, we identified four groups of people and used these to shape the Financial Resilience Barometer.
First, we have ‘Financially Fragile’ – those with limited savings and little ability to absorb financial shocks.
Then ‘Economically Exposed’ – this group may have some financial buffer in place but remain financially vulnerable.
Our Cautiously Coping group are those who typically have moderate financial buffers and greater long-term security but aren’t fully insulated from ongoing cost pressures.
And finally, Robust and Resilient, - those with stronger savings, pensions and greater financial security, making them better placed to cope with financial shocks.
Overall, the report shows there’s been some improvement in certain areas but on average UK adults sit in the Economically Exposed category. This highlights how widespread financial vulnerability remains and reinforces the importance of helping people build savings and longer-term financial resilience.
Understanding your own workforce’s level of financial resilience can help you take more targeted, practical steps to support your employees.
And ultimately, that’s what this report is about, exploring how collectively we can help more people feel financially resilient, today, and in the future.
Understanding the four resilience groups
The barometer groups people into four categories based on their financial resilience score:
- Financially Fragile (0-19%)
The Financially Fragile group, representing those with a financial resilience score between 0 and 19%, has the weakest financial resilience. This group is characterised by low savings, little disposable income and a limited ability to cope with life shocks or rising costs. - Economically Exposed (20-39%)
Adults with a financial resilience score of 20-39% are considered Economically Exposed, meaning they have some financial buffer but remain vulnerable to shocks and increasing costs. - Cautiously Coping (40-59%)
Those in the Cautiously Coping category typically have moderate financial buffers and greater long term security than more financially exposed groups, with scores ranging from 40-59%. However, they are still not fully insulated from ongoing cost pressures. - Robust and Resilient (60-100%)
The most financially secure group, Robust and Resilient adults, includes individuals scoring between 60 and 100% on the financial resilience index. They tend to have higher incomes, along with stronger savings and pensions, making them better placed to manage financial shocks and maintain long term stability.
For employers, this reinforces an important point: employees aren’t all starting from the same place, and support needs can vary significantly.
The state of financial resilience
Based on a nationally representative survey of more than 4,000 UK adults, our research shows that financial resilience across the UK remains fragile.
Overall, the Barometer shows that UK adults fall into the Economically Exposed category, with an average resilience score of 33%, while around 30% are Financially Fragile.
Confidence in financial future remains low. Rising living costs mean some employees are reducing savings or drawing on existing resources, which can impact their long-term financial security.
For those who have opted out or reduced pension contributions, 68% say affordability is the main reason. This reflects wider financial pressures shaping behaviour. 16% of Economically Exposed adults say they have reduced how much they’re saving, while 25% do not have a plan in place to cover the rising costs. Together, this highlights how immediate financial challenges can take priority over longer term planning.
Being in work doesn’t guarantee financial resilience
- The Barometer highlights that more than a third of employees fall into the Financially Fragile category, showing that having a job doesn't always mean feeling financially secure. 19% of UK adults could cover their bills for one month or less if their income stopped due to illness.
Confidence in financial future remains low
- Only 33% of UK adults feeling confident that they’re saving enough for a good standard of living in retirement, meaning many employees may be contributing without understanding whether it will be enough.
Financial pressure can affect the employee experience
- Financial pressure can affect the employee experience in different ways. 7% of employees have taken time off work due to financial stress, highlighting the impact financial worries can have on attendance and productivity.
Many employees are not actively planning for retirement
- 43% of UK adults have thought about what they might need in retirement in the last 12 months, while 48% have not. Additionally, only 16% are using tools, and 5% have asked for advice.
Short term pressures are affecting long term outcomes
- Rising living costs mean some employees are reducing savings or drawing on existing resources, which can impact their long-term financial security. For example, 2% of Economically Exposed adults have used retirement savings to cover increased costs.
Supporting your employees
Our research shows that many employees are facing financial pressure. Employees may be earning and saving, but still feel unsure about what their financial future looks like.
This creates a clear opportunity for employers to support their people with financial wellbeing support. Supporting financial resilience will not only will help employees feel more in control, but also improve engagement, productivity and long term retention.
Here are some steps you can take to help:
Promote financial understanding and confidence
Many UK adults lack confidence in their finances. Among those who are financially fragile, 41% say they don’t feel in control of their finances. This highlights a clear need for simple, accessible guidance. Make it easier for employees to understand their finances by pointing them towards our guides and tools to help them understand the support that’s available to them.
Improve pension engagement
47% of workers don’t know their own pension contribution rate, and 54% don’t know how much their employer contributes, highlighting a clear awareness gap. Help employees understand how their pension fits into their wider financial picture, not just highlighting what they’re saving, but what it could mean for their future. 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.
Support short term financial resilience
Encourage practical steps such as building savings buffers and signposting support available during financial difficulty. Small actions can help employees feel more in control day to day. 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.
Support employees in understanding the longer term impact of these decisions, through clear guidance, tools and support such as webinars, financial wellbeing services and in-person engagement.
Help employees take the first step
Many people haven’t actively planned for retirement or used tools to support their decisions. 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.
Simple actions, like checking contributions and tracking progress through our mobile app, can help employees feel more in control and make getting started feel more manageable.
Take a joined up approach to financial wellbeing
Financial wellbeing goes beyond pensions. Connecting day to day financial support with longer term planning helps create a more relevant and meaningful experience for employees. 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 2026 report shows that while there are signs of recovery, financial resilience remains uneven across the UK.
Many people are still navigating low confidence, limited savings and ongoing exposure to financial shocks, meaning the foundations of financial resilience remain fragile.
Employers have a pivotal role to play in this, by not only offering competitive compensation, but helping employees feel more confident, informed and in control of their financial future, 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 4,045 adults. Fieldwork was undertaken between 4th-19th March 2026. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).