Pension confidence on the wane for under-55s

When it comes to confidence about retirement, we are a divided nation, according to new research, with older Brits reporting higher levels of confidence than those in the thick of their working years.

PensionBee’s latest Pension Confidence Index reveals that on balance,

Brits feel more negative than positive about their retirement outlook, with a Pension Confidence Indicator of -10 in December 2023, down from -9 in September 2023.

More than half (51%) of Brits continue to feel negative about their retirement outlook, while positive sentiment has decreased from 42% in September 2023 to 41% in December 2023, indicating a slight decline in overall pension confidence over the last three months.

The Pension Confidence Indicator – a new measure of sentiment towards retirement – is the difference between the proportion of British adults stating they feel negative and the proportion who feel positive about their pension outlook, with a minus number indicating more negative than positive sentiment.

There was an increase in pension confidence among over-55s in 2023, but a bigger increase in negative pension sentiment among adults more than 10 years below the pension age.

Pension concerns intensified in late 2023 for those under 55, with 57% admitting “quite negative” and “very negative” emotions about their pension – a 6% increase in negative sentiment.

Gender disparity persists among over-55s, where over half (58%) of men noted positive pension sentiments compared to only 37% of women.

Becky O'Connor,

Director of Public Affairs at PensionBee, commented: “Brits were feeling increasingly down about their pension prospects towards the end of last year. How we feel about our longterm financial prospects is a key indicator of how other financial pressures and concerns affect our lives.”

“How we feel about our longterm financial prospects is a key indicator of how other financial pressures and concerns affect our lives