Confidence in retiring comfortably is on the rise, with a third (33%) of UK workers now feeling very or extremely confident about achieving a lifestyle they consider comfortable in retirement, according to Aegon.
The retirement specialist said the figures marks a significant uptick on the 22% who said the same in 2023 and 30% in 2024, reflecting growing optimism about long-term financial wellbeing.
However, confidence levels vary significantly across age, gender and income groups.
Aegon said confidence is highest among younger workers and men, with 55% of 25-34 year old and 43% of men expressing high confidence, compared to just 23% of women and only 14% of 45-54 year olds.
Meanwhile, just 18% of low-income workers feel confident about retiring in comfort, compared to 71% of higher-income 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 said it’s vital individuals have access to help to prepare financially for their retirement, starting with exposure to the right tools, education, guidance and advice.
“These confidence gaps reflect age-old challenges in how we approach financial planning and retirement. 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
“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.”
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