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The confidence in UK adults’ ability to have enough capital during retirement has dropped since last year.
This is according to Nucleus UK Retirement Confidence Index which found that overall confidence is 4.6 in 2024 down from 6.9 in 2023.
Nucleus technical services director Andrew Tully said last year the figure was higher than the company expected it to be.
The research from last year has been expanded to include UK adults from the age 18+ whereas last year it was based on adults over 50.
Out of the different age groups, it was the 35-44 and 45- to 54-year-olds with lowest retirement confidence, 3.7 and 3.8 respectively.
The retirement confidence is split between genders, but both have witnessed a drop from last year. Men’s retirement confidence has dropped from 7.2 to 5.1 and women’s from 6.5 to 4.1.
Furthermore, 44% of people do not believe the State Pension will exist in the future. Additionally, 36% of men and 46% of women have no income being contributed to pensions.
The amount of being contributed to defined benefit (DB) pension schemes also declined and was 6.5 down from 7.5 in 2023.
As well as confidence dropping, people’s targets also seem to fall short. The majority of respondents believe they will need between £20,000 and £30,000 a year for a comfortable retirement.
The Pensions and Lifetime Savings Association (PLSA), however, has said £43,100 is needed a year for a comfortable retirement.
Another factor that has weighed on pension confidence was Chancellor Rachel Reeves’ first Budget on 30 October.
Only 2% said they were more positive after the budget, with 26% saying they were either slightly or much less confident about their financial planning retirement prospects.
This figure increased to 36% for those aged over 65.
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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