One in three UK workers, 33 per cent, now feel very or extremely confident about retiring with a comfortable lifestyle, up from 22 per cent in 2023 and 30 per cent in 2024, according to Aegon.
But the research, which orm part of Aegon’s Second 50 initiative, highlights a clear gender gap, with 43 per cent of men feeling confident about retirement compared with just 23 per cent of women.
The research also uncovers big gaps in confidence across different groups with younger workers being the most positive. Around 55 per cent of 25–34-year-olds feeling confident, compared with just 14 per cent of those aged 45–54.
It also highlights gender differences with 43 per cent of men reporting high confidence in their retirement but only 23 per cent of women feel the same. Income also makes a major difference, with 71 per cent of higher earners confident about retiring in comfort, versus only 18 per cent of lower earners.
Aegon pensions director Steven Cameron says: “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.
“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.
“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. 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.”
