Research from Gallagher has identified a clear link between an employee’s age and demand for health and protection benefits.
The data highlights a gap between what employees want from their benefits packages, and what is offered by employers. Demand for income protection was found to triple 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.
Hidden demand
The findings highlighted a mismatch between what employees value in a benefits package and what is currently offered by employers.
Employee personal accident insurance featured in the top 10 selected benefits across all age groups. However, the benefit was offered by just 12% of employers working with Gallagher.
From perks to protection
Benefits preferences shifted significantly over the course of a career. The data indicated that in their 20s, employees tend to favour 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 centre 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% |
Holiday trading
However, holiday trading was the most popular flexible benefit across every age group, reflecting the workforce’s ongoing interest in flexible working arrangements.
Uptake was found to rise with age, increasing from 19% among employees aged 20–29 to 24% among those aged between 50 and 59.
Let the data guide you
Alistair Dornan, managing director of UK benefits of Gallagher’s benefits and HR consulting division, 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 behaviour, and organisations 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 modernise 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 organisation.”
