Marvin Onumonu33% of workers felt very or extremely confident about being able to retire comfortably, according to Aegon’s latest ‘Second 50’ data.
This was up from 22% in 2023 and 30% in 2024.
Confidence levels were highest among younger workers and men, with 55% of 25 to 34-year-olds feeling confident compared to 14% of those aged 45 to 54.
43% of men said they felt confident about retiring in comfort, compared to 23% of women.
There was a clear difference by income too, with just 18% of low-income workers feeling confident, compared to 71% of higher earners.
Steven Cameron, pensions director at Aegon, said: “It’s encouraging to see confidence in retiring comfortably improving year-on-year.
“This improvement could reflect the broader economic trends we’ve seen in recent years, including earnings growth rising faster than inflation, inflation easing from its peak, and interest rates steadying.
“But it’s also clear from our results that this optimism isn’t shared equally. Women and lower-income workers continue to report significantly lower confidence, which points to persistent challenges and also highlights the importance of further industry support and engagement.”
Cameron added: “It’s vital that individuals have access to help to prepare financially for the second half of their lives.
“Better insights and taking control are vital to help close these confidence gaps.
“That starts with access to the right tools, education, guidance and advice. The FCA’s new targeted support could add a further option for many.”
He said: “These confidence gaps reflect age-old challenges in how we approach financial planning and retirement.
“Aegon’s Second 50 offers a positive starting point for tackling some of the deeper challenges in retirement planning. It’s about recognising that we all have different and evolving hopes for retirement in a changing world.
“Retirement for today’s workers will be very different from previous generations, often involving working and living active lives for longer than our parents or grandparents.”
He added: “Being able to picture your ‘retirement self’ can help you take control and start to build greater confidence.
“By working together – government, employers, individuals and the pensions industry – we can create more opportunities for individuals, whatever their circumstances, to take control of their financial future and feel more confident about their retirement.”
