Confidence in retirement prospects has fallen slightly among UK adults as the Budget looms.
The latest pension confidence index from PensionBee, revealed confidence dipped to +28 in comparison to +30 in July 2024.
According to PensionBee, confidence among working-age savers has consistently lagged behind those over the age of 55, who are closer to or at retirement age.
However, despite the overall decline, confidence among the under 55s has increased, for the first time, from 45 per cent in June to 49 per cent in September.
Key drivers of confidence for this demographic were employer contributions (47 per cent), personal contributions (42 per cent) followed by satisfaction with fund performance (24 per cent).
According to PensionBee, pension confidence for the over 55s fell between September and December 2023 (from 52 per cent to 47 per cent), before peaking in March 2024 (65 per cent), decreasing slightly most recently (62 per cent).
The research also revealed an increase in distrust in the government’s commitment to maintaining a sufficient state pension, up from 18 per cent in March 2024 to 27 per cent in September 2024.
A large challenge for the over 55s remains the perceived inadequacy of their pension pot, with 34 per cent identifying it as their primary worry for the third consecutive Index.
Becky O’Connor, director of public affairs at PensionBee, said: “Pension confidence is fragile, appearing to be very swayed by sentiment, speculation and general political measures. This underscores how important the tone and content of the upcoming Budget will be to the way people plan and manage their long-term finances.
“The chancellor’s moves have real world consequences for people’s retirements. The pension confidence index suggests that far from pensions being under people’s radar, both working and retired populations are acutely aware of how policy moves can impact them meaningfully.”
The research also revealed there has been a growing priority for under 55s to increase their contributions rising to 42 per cent compared to 29 per cent in September 2023.
While concerns about not being able to contribute enough to their pension decreased from 34 per cent to 29 per cent over the same period.
alina.khan@ft.com
