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One in three UK workers fear they will never retire comfortably, research finds

The Barnett Waddingham survey found 32% of workers lack confidence in their retirement income, with concerns particularly pronounced among those nearing retirement.

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One in three UK workers fear they will never retire comfortably, research finds
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A third of UK workers do not feel confident they will retire with a comfortable income, according to new research from consultancy Barnett Waddingham (BW), part of Howden.

The survey found 32% of workers lack confidence in their retirement income, with concerns particularly pronounced among those nearing retirement.

Almost half (48%) of workers aged 45 to 54 and 40% of those aged 55 and over reported doubts about their financial future.

Barnett Waddingham said confidence appears to be worsening. Its previous study in 2024 found 42% of workers aged 45 to 54 and 37% of those aged 55+ were not confident about retiring comfortably.

The research also highlighted a widespread lack of planning. More than a quarter of workers (28%) have not set any retirement goals, up from 13% in the consultancy’s 2024 study. Among those expecting to retire within the next decade, nearly one in five (17%) have no financial targets for retirement.

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A gender divide in retirement preparedness was also identified. While 27% of men expressed concerns about their retirement income, the figure rose to 42% among women, who were also less likely to have established formal financial goals.

Despite widespread concerns about retirement, engagement with pensions remains limited.

While 58% of workers worry about losing track of their pension pots or the total value of their savings, nearly one in five (19%) have never logged in to view their pension value. Just over a quarter (27%) check their pension accounts annually.

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Engagement is particularly low among those close to retirement.

More than a quarter (27%) of workers planning to retire within the next year said they have never logged in to view their pension value, while only 53% check their accounts multiple times a year in the final stages before retirement.

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Mark Futcher, head of DC at Barnett Waddingham, part of Howden, said: “For many workers, retirement planning can feel a bit like staring at a foggy horizon – it’s there, but the detail is hard to make out.

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“Too many people are still approaching that horizon without a clear map of where they stand, or whether their current savings will carry them into the lifestyle they’re hoping for.

“Pensions needn’t be a mystery, and small, steady habit changes can help change the direction of travel. Checking your balance using projection tools, and increasing contributions after a pay rise are small course corrections that can make a big difference over the long haul.

“And where employers offer matched contributions, failing to take the full amount is like turning down free fuel for the trip – compounding into something far more powerful over time.

“But this isn’t down to individuals alone – employers and pension providers have an important part to play. More often than not, workers can be unaware of the full extent of support tools they are paying for, but not taking advantage of – like free guidance, pension transfer tools and more.

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“You should always take the time to understand the benefits your scheme offers, but equally employers and providers need to make those tools easier to find, easier to understand and easier to act on. Improving retirement outcomes is a shared effort, and when everyone pulls in the same direction, the journey becomes far clearer.”

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