Almost half of middle aged workers feel they will never to able to retire comfortably, according to new research.
A survey by Barnett Waddingham found that 48 per cent of workers aged 45-54 were concerned about this, as were 40 per cent of those aged 55 plus. Overall a third (32 per cent) of the wider workforce expressed concerns about this issue.
The number of those facing bleaker retirement prospects is increasing, with a similar study by BW in 2024 finding 42 per cent of those aged 45-54, and 37 per cent of those aged 55+ were not confident that would retire with a comfortable income.
BW says these figures show a lack of engagement with pension and a systemic lack of planning.
BW found over a quarter (28 per cent) of the workforce have not set any goals for their retirement whatsoever – a huge leap from the 13 per cent that said the same in BW’s 2024 study. Most worryingly, nearly one in five (17 per cent) of those expecting to retire within the next decade have no retirement goals.
The findings also further evidence a stark gender divide in retirement preparedness. While over a quarter (27 per cent) of men express concerns about their retirement income, that figure jumps to two fifths (42 per cent) of women, who are notably less likely to have formal financial goalposts in place compared to their male counterparts,
Workers’ concerns are not prompting pension engagement. While well over half (58 per cent) of the workforce is worried about losing track of their various pension pots or the total value of their savings, 19 per cent of workers have never logged in to view their pension value. Just 27 per cent check their accounts on a regular annual basis.
This lack of engagement is particularly acute for those on the cusp of retirement. Over a quarter (27 per cent ) of workers planning to retire in under a year have never logged in to view their pension value, and only 53 per cent check their accounts multiple times a year during this critical final run-up.
Barnett Waddingham head of DC Mark Futcher says: “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. 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.
“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. 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.”
