UK Snapshot
Our research shows that retirement optimism is low in the UK compared to global peers. Explore how efficient defaults, retirement income, and artificial intelligence could be key to improving retirement confidence.
Building Retirement Confidence With UK Defined Contribution Members
In 2018, we launched our Global Retirement Reality Report — a global survey designed to understand the expectations, hopes, fears, and needs of Defined Contribution (DC) pension scheme members when it comes to retirement planning. Since the survey’s inception, UK members have consistently stood out as the most pessimistic in the global sample regarding their retirement expectations.
Fielded in April 2025, our latest Global Retirement Reality Report surveyed 4,371 members saving into DC schemes around the world and suggests the trend in 2025 remains the same, with over half of UK respondents reporting a lack of optimism in their retirement prospects. It is vital to understand what lies behind this persistent pessimism and what barriers are holding UK members back to be able to help close the gap between current uncertainty and future retirement security.
Figure 1: % Optimistic About Being Financially Prepared for Retirement
To better understand this persistent pessimism, we asked members how their retirement outlook has changed over the past six months. While the majority reported no change, nearly a third (30%) said their outlook on how and when they might retire had changed. Of these, 40% now plan to retire later than expected and 34% expect to only partially retire.
When asked about the factors that had most negatively impacted their confidence, respondents pointed to inflation and the rising cost of living, followed by broader concerns about the economy and the political environment. Underscoring their sense of uncertainty about the future, survey respondents’ top two retirement concerns were not knowing how much savings they will need and lacking confidence in their ability to generate a consistent income in retirement.
“I am not entirely sure I can cover existing adult life, bills and buying a house - let alone my elderly support.”
“Better understanding of pensions and what I can do to maximise returns whilst I am able to and young enough to.”
“Flexibility is the key for me, it is hard to say now even at 50 years old what I want to be doing at 60-70+ so I need to be able to change those plans to suit the circumstances nearer the time. So many factors are constantly changing in my life that I'd just reassess every year. The support I need to get there is being able to see different forecasts / scenarios with my various pension investments so I can see what options I have available.”
“Career change and continue to work part time until at least my late 70s, with support needed for the retraining needed to achieve this.”
What UK Members Need From DC Plans to Close the Confidence Gap
While UK members were disproportionately pessimistic compared to their global peers, it’s worth noting that the UK is relatively advanced in terms of retirement plan participation,1 thanks to the introduction of automatic enrolment in 2012.
Against this backdrop, we explored what DC plans need to offer to better support members — focusing on the features that matter most to them. By aligning plan design with member priorities, DC plans have the opportunity to boost confidence among UK members and help close the gap between their level of confidence and retirement savers worldwide.
Delivering Value in Default Strategies
Members continue to prioritise maximising returns and minimising charges above all else. As DC providers explore new investment approaches, such as private markets and UK productive finance, members remain focused on outcomes.
Figure 2: Investment Priorities for DC Plans
65% surveyed said “I would like my retirement savings invested in a way that maximises returns, regardless of where it is invested”
While 24% said they would consider saving more if their pension were invested domestically, the majority simply want strong performance — something underscored by the 54% who said a significant drop in their pension pot due to poor performance would discourage further saving. This highlights the need for DC plans to balance innovation with clear risk management.
Productive finance — generally less liquid assets like private equity, real estate, or infrastructure — may offer diversification benefits, but the return profile differs from traditional equities and should be carefully positioned alongside other asset classes to help potentially smooth returns.
This emphasis on strong risk-adjusted return reinforces the relevance of the UK’s Value for Money framework, which seeks to ensure that members receive good outcomes by focusing on net returns, costs, and service quality. As defaults evolve to include a wider range of asset classes, aligning investment strategies with these principes will be key to building member trust and delivering long-term value.
Income Options that Reduce Uncertainty
Since the introduction of Pension Freedoms in 2014, numerous studies have highlighted the uncertainty that members face regarding retirement options.2 Echoing this, our survey found that a significant portion of members (42%) were unsure about their plans for retirement when presented with options such as annuities, cash, and income drawdown.
Given this uncertainty, it is not surprising that 45% of members indicated they would likely keep their money in their existing retirement plan after retiring, provided the plan could offer them a reliable income. Among those who plan to withdraw their savings and invest elsewhere in retirement, investment performance and company reputation were expected to be the most important factors.
Figure 3: Important Factors When Choosing a Pensions Provider
Not Ready for AI But Technology and Human Advice Can Help
While the idea of using artificial intelligence in financial advice is gaining traction, our findings suggest members aren’t quite ready to embrace it. What did come through strongly, however, was a clear desire for more guidance to help members move from where they are today to where they want to be in retirement.
“Unsure if I will have enough in my pension fund at retirement and would need professional guidance to review all my pension funds in place.”
Despite this need, usage of financial advisors remains limited. Just 7% of UK respondents reported having spoken to an advisor in the past six months. The primary barrier? Cost — 44% said fees were too high. With independent financial advice out of reach for many, digital solutions such as AI and robo-advisors could offer a scalable alternative. However, most members remain sceptical about trusting AI with their retirement planning.
The opportunity lies in making digital tools more accessible, trustworthy, and tailored — while ensuring they include qualified oversight. When guided by human expertise and designed around member needs, technology could help close the guidance gap and empower members with greater confidence.
Figure 4: Openness to AI / Robo-advice
From Concerns to Lasting Retirement Confidence
The findings of the 2025 Global Retirement Reality Report highlight a persistent and deeply rooted sense of uncertainty among UK DC members. Whilst the challenges are clear — from inflation and market volatility to limited guidance and confidence gaps — they also present a critical opportunity.
By focusing on delivering value, simplifying decision-making, and designing flexible, outcome-oriented solutions, DC plans and providers can play a pivotal role in increasing confidence and empowering members to take control of their retirement journey. With thoughtful innovation and targeted support, the path from uncertainty to security can likely become more accessible for all. That’s where partnership can make a real difference.
We work together with DC plans and providers to design strategies that align with evolving member needs by focusing on value, flexibility, and confidence building solutions. Please get in touch to discuss how we can help. Working together, we can help people turn their retirement hopes into retirement reality.
Bridge the Retirement Confidence Gap
Don’t miss our global retirement study of more than 4,000 savers worldwide. Uncover the forces shaping sentiment, savings behaviors, and income expectations — and the ways institutions can play a vital role now in helping people turn their retirement hopes into reality.
About This Survey
Our global online survey, conducted during April 2025 with international data analytics firm YouGov, engaged a total of 4,371 individuals participating in workplace-sponsored savings plans (or the market equivalent) in Canada, Australia, Ireland, the UK and the US. Surveyed countries represent a range of retirement systems. Gender, age, and regional quotas were balanced to reflect employed populations within each country.
By gaining saver sentiment, we’re seeking to further our global goal of making retirement work for people, plans and policymakers in a changing world.