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Brits’ confidence in their retirement prospects continues to rise, according to PensionBee’s latest Pension Confidence Index.
The Pension Confidence Indicator score surged to +30 immediately following the General Election, up from +22 in March 2024.
This was also significantly higher than -10 in December 2023 and -9 in September 2023.
For those under 55, positive pension sentiment increased significantly, from 39% in March 2024 to 50% in July 2024.
The top reasons for feeling positive were: ‘My employer contributions are relatively good’ (45%); ‘my personal contributions are relatively good’ (43%); and ‘my fund performance is good’ (20%).
The top reasons for feeling negative were: ‘I think my pot is small (34%); I can’t afford to contribute enough’ (32%); and ‘I’m worried about my costs in retirement’ (26%).
Pension optimism remained high in the over-55s, too, with two-thirds (65%) feeling positive in July 2024, up one percentage point from March 2024.
Negative pension sentiment also remained low, at less than a quarter (22%) in July 2024, consistent with four months prior.
The top reasons for feeling positive in this age group were: ‘I am entitled to the full state pension’ (63%); I have a good defined benefit pension’ (23%); and ‘I am already enjoying a comfortable retirement’ (20%).
The top reasons for feeling negative were: ‘I wish I’d saved more’ (29%); ‘I don’t trust the government to maintain a decent state pension’ (27%); and ‘I’m worried about the impact of inflation on my pension’ (23%).
For the first time since the index’s inception in September 2023, all age groups felt, on average, more positive than negative about their retirement prospects.
The most notable change among working-age adults in the last four months is the shift among those aged 45-54.
Their dominant pension sentiment is now positive, with 41% of respondents feeling this way.
If you want a better view of what your future could be, we'll have a chat over a cup of coffee in our Durham office and work out if we can add any value to your financial picture.
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