Four in 10 workers doubt their pension will fund retirement, Penfold finds

More than two in five UK workers do not believe their current pension will provide a comfortable retirement, despite most employers saying they would continue offering workplace pensions even if they were no longer legally required.

Research from Penfold found 43% of employees lack confidence that their pension savings will fund a comfortable retirement, while 26% said thinking about their pension makes them feel anxious or confused.

The findings come as employers continue to view pensions as an increasingly important workplace benefit.

Nearly two-thirds (65%) said pensions are now a competitive advantage or core employee benefit, while 86% said they would continue providing workplace pensions even without a legal requirement.

However, the report revealed a gap remains between employer investment and employee engagement.

Only 17% of workers described themselves as very confident about their retirement, while 13% said they had reduced, paused or stopped their pension contributions during the past year.

Chris Eastwood, chief executive and co-founder of Penfold, said: “The encouraging news is that employers are taking pensions seriously.

“They recognise that delivering quality, impactful pensions is an important part of attracting and retaining staff.