GEN Z PREPARING FOR EARLY RETIREMENT AMID SURGE IN MENTAL HEALTH PROBLEMS
One in three Gen Z workers expects to retire early because of health problems, amid a surge in conditions like anxiety, depression and ADHD.
Some 35pc of employees aged 16 to 24 said they expected to have to stop working early for health reasons, a survey by Axa found. This was the highest share of any age group and Axa said it reflected widespread mental health problems among this age group.
Heather Smith, chief executive of Axa Health, said: “While the conversation around early retirement has traditionally focused on finances and lifestyle choices, our data reveals a more troubling and unexpected driver – poor mental health among younger generations.
“When you’re living with these conditions from your teens and twenties onwards, the thought of working until 67 or beyond can feel insurmountable. We’re facing a generation that may need to retire early not by choice, but by necessity, and that will have implications for both individuals and our economy.”
Ms Smith added: “Ultimately, when young people are contemplating early retirement before they’ve even reached mid-career, we need to recognise this as the workforce crisis it truly is.”
The insurer surveyed 2,000 workers across the UK in November. The findings will trouble policymakers who are already alarmed about the nearly 1 million young people who are not in education, employment or training (NEET).
Wes Streeting, the health secretary, last week ordered an inquiry into “overdiagnosis” of mental health conditions over concerns it is fuelling a surge in benefit claims and worklessness.
The problem is particularly acute among younger generations. Someone aged 16 is now more likely to receive disability benefits than at any other age up until 53, according to official figures.
A similar pattern is also coming through in health insurance claims at Axa, with young people driving demand for mental health support.
Ms Smith said: “We know from NHS figures that one in five children and young people have a probable mental health disorder, and we’re now seeing how that translates into the workplace. This is seen in our data – 55pc of Axa Health’s mental health claims are from people under 40.”
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Even though the prevalence of ill health and disability typically rises with age, the youngest workers are the most likely to say they may need to retire early for this reason.
Only 16pc of employees aged 45 to 54 said their health might force them to stop working earlier than planned.
Many young people also feel that their job is making their health worse. One in three said it prevented them from leading a healthy lifestyle because they often feel stressed.
However, the research also found it is the oldest workers who are most likely to work through their lunch break, with 18pc of over-55s saying they take no break at all.
Lyndsey Simpson, the founder of 55/Redefined, a company that helps over-50s find work and offers advice, said: “There is a paradox about age and work in that the older the employee, the less likely they are to take a day off work sick, versus their younger colleagues.
“This stoic, resilient, always showing up attitude is admirable and benefits employers who typically see their over-50s workers 200pc less likely to take a day off work than their under-30s.”
While the statistic Ms Simpson highlighted is from 2015, other studies have found similar results. Research by charity Mental Health UK published earlier this year showed that one in three young workers had taken sick days because of mental health issues triggered by stress, compared with only one in 10 employees aged over 55.
Among workers of all ages, Axa found that one in three listed health as the biggest threat to their career.
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2025-12-07T17:55:39Z