A new study reveals that British workers are becoming increasingly optimistic about their retirement prospects, with one in three now expressing strong confidence in their ability to maintain a comfortable lifestyle after leaving work.
The latest figures from Aegon's Second 50 research programme show that 33 per cent of UK employees feel very or extremely confident about their retirement comfort, marking a substantial increase from just 22 per cent who felt this way in 2023.
The 2025 data represents a continuation of an upward trajectory, building on the 30 per cent confidence level recorded in 2024, suggesting growing financial optimism among the workforce.
However, the research exposes significant inequalities in retirement outlook across different demographic groups.
Britons are becoming increasingly optimistic over their future pensions
|GETTY
Women demonstrate markedly lower confidence than their male counterparts, with merely 23 per cent expressing strong belief in their retirement security compared to 43 per cent of men.
Age also plays a crucial role in shaping retirement expectations. Workers aged 25-34 show the greatest optimism at 55 per cent, while those in the 45 to 54 age bracket display the lowest confidence at just 14 per cent.
Income levels create the most dramatic divide, with only 18 per cent of lower-paid workers feeling assured about their retirement comfort, contrasting sharply with 71 per cent among higher earners.
The research forms part of Aegon's Second 50 programme, designed to help people take charge of their financial futures during middle age and beyond.
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Steven Cameron, the pensions Director at Aegon, welcomed the improving confidence figures and broke down why retirees are feeling better about the cost of living.
Mr Cameron shared: "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."
He acknowledged the uneven distribution of optimism: "But it's also clear from our results that this optimism isn't shared equally,"
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How confident are Britons about their pension savings?
|AEGON
Cameron emphasised the ongoing difficulties faced by women and those on lower incomes, noting these groups "continue to report significantly lower confidence, which points to persistent challenges and also highlights the importance of further industry support and engagement.".
The retirement expert also stressed the necessity for comprehensive support when it comes to helping Britons boost their retirement savings.
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"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 Labour Government has recently launched multiple reforms impacting retirees, including a Department for Work and Pensions (DWP) review into the state pension age.
As well as this, Chancellor Rachel Reeves has unveiled plans to consolidate retirement savings by double the UK's number of pension megafunds.