UK employee demand for income protection triples between age 20 and 59 - but only 24% of employers offer it, finds Gallagher

Rhea-AI Summary

Gallagher (NYSE:AJG) analysis of ~65,000 UK employee benefit selections on Gallagher Guide (April 7, 2026) finds shifting preferences: income protection demand triples from 4% (age 20–29) to 12% (age 50–59), yet only 24% of employers offer it. Holiday trading is the top benefit across all age groups, rising to 24% uptake for ages 50–59. Employee critical illness selections rise from 9% (20–29) to 15.6% (50–59). The data highlights a gap between employee demand for protection benefits and employer provision.

Positive

• Income protection demand triples from 4% to 12% by age 50–59
• Sample size covers ~65,000 UK employees across 25 companies
• Holiday trading is top benefit across all age groups, rising to 24% uptake

Negative

• Only 24% of employers offer income protection despite higher demand
• Just 12% of employers offer personal accident insurance while it ranks top-ten
• Protection gap evident as critical illness uptake rises but employer offer rates lag

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ROLLING MEADOWS, Ill., April 7, 2026 /PRNewswire/ -- 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."

ABOUT GALLAGHER
Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

Contact:      
Mary Schwartz, Gallagher
847.378.5893
mary_schwartz@ajg.com

 

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SOURCE Gallagher

FAQ

Why does Gallagher (AJG) say income protection demand rises by age in the UK?

Demand for income protection increases with age as financial responsibilities grow. According to the company, selections rise from 4% for ages 20–29 to 12% for ages 50–59, reflecting greater interest in financial security later in careers.

What percentage of UK employers offer income protection, per Gallagher (AJG) April 7, 2026 report?

Only a minority of employers offer income protection. According to the company, 24% of employers currently offer income protection to their workforce, revealing a gap versus employee demand identified in the data.

How popular is holiday trading across age groups in Gallagher's (AJG) UK analysis?

Holiday trading is the most popular flexible benefit for all ages. According to the company, uptake rises from about 19% (ages 20–29) to 24% (ages 50–59), and it is available to 72% of Gallagher clients.

What does Gallagher (AJG) report about employee critical illness selections by age?

Critical illness selections increase with age, indicating protection priorities. According to the company, uptake moves from 9% for ages 20–29 to 15.6% for ages 50–59, and exceeds 22% among some mid-career groups.

How large is the dataset behind Gallagher's (AJG) UK benefits findings announced April 7, 2026?

The analysis is based on a substantial employee sample. According to the company, roughly 65,000 UK employees across 25 companies made benefit selections on the Gallagher Guide platform used for the study.