Pensions and retirement in 2025: 10 key insights from UK savers
Foreword: What do UK workers think about pensions in 2025?
Change is constant in the world of pensions, and keeping up with the thoughts, needs and wishes of pension savers themselves is essential in serving their needs best.
This report highlights research from over 2,500 UK workers, examining their knowledge and attitudes toward pensions. As part of our ongoing commitment to sharing key information and best practices across the industry, we’re sharing a summary of the key findings ahead of releasing the full report, giving you a snapshot of the most important insights.
Our findings reveal key insights into their confidence, attitudes toward engagement, and expectations both at an overall level, and where they differ between age groups, genders, regions and earnings levels. While it is crucial to understand how savers think and what they believe they need, we hope readers will see these insights as more than just data points – they highlight challenges and opportunities in pension provision today.
And, as workplace pensions play an increasingly core role in financial wellbeing, taking action to better deliver pensions incorporating this knowledge has the potential to provide better lives for savers and their families. This report discusses key trends from our research, some of which agree with the current consensus and some of which are counter to prevailing beliefs. It also offers practical information which may help employers and advisers to support employees in securing a better retirement future.
The research
This survey explored the views of 2,509 UK workers across all age groups and salary ranges. Conducted between December 2024 and January 2025 – a financially challenging time for many due to Christmas – it was unweighted and used self-reported age data to categorise respondents into four generations. This allowed us to analyse both differences and similarities. We also examined results by gender, income level, and region to gain deeper insights into pension knowledge and attitudes. We’re grateful to everyone who took part.
Executive summary
At Smart Pension, we look after the workplace pensions of 1.5 million UK workers and over 90,000 employers. Our focus is on delivering great value, supporting savers, providing a pension suitable for every business, and making decisions that build long-term trust. To achieve this, we regularly engage with both employers and members, ensuring we understand their needs. Our survey of 2,509 UK workers of all ages and salary ranges is part of our commitment to sharing insights that benefit the wider industry, helping to shape better outcomes for UK pension savers, retirees, providers, and policymakers alike.
Read on for our key findings or, download the 10 key insights from UK savers to get a clearer picture of the trends shaping pensions and retirement in 2025.
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Key findings
Widespread concern over economic challenges, more prevalent among women than men
Nearly half (49%) of respondents believe economic challenges will definitely make it harder for their generation to retire comfortably. Women (55%) are more likely than men (46%) to express this concern.
Knowledge limitations may drive uncertainty across all generations, in particular Gen Z
1 in 5 UK workers (20%) do not know when they will be eligible for the State Pension. This could equate to around eight million working age people. Awareness is lowest among Gen Z, with only 58% knowing their eligibility age, compared to 85% of Gen X. Where ‘uncertainty’ is a driver of disengagement, knowledge gaps may limit better outcomes.
Contradictions in pensions knowledge, and engagement
Despite a general perception that younger workers are harder to interest in pensions, and lower knowledge of the State Pension age, Gen Z respondents said they were the most confident in their pension knowledge of any generation, with 27% rating their understanding at a maximum ‘10/10’. However, overall 1 in 6 workers (17%) said they were unsure or sceptical about whether pensions are worth investing in, highlighting a potential gap in financial education or simply indicating that other things are taking priority.
Expectation of continued state pension age increases
More than three quarters (76%) of respondents believe the State Pension age will continue to rise. This belief is strongest among Gen Z respondents (at 81%), declining slightly among older generations.
Low confidence in reaching a comfortable retirement
Just 12% of respondents are fully confident (10/10) they will save enough to retire comfortably. Once again, Women (47%) are significantly less likely than men (59%) to feel confident about their retirement savings when looking beyond those who simply score their confidence ‘10/10’. Paradoxically, Gen Z is most confident, with 17% rating their confidence at 10/10, while only 10% of Gen X say the same.
Financial pressures impacting pension contributions
More than a third (34%) of respondents have considered pausing workplace pension contributions due to financial pressures. This is most common among younger workers – 38% of both Gen Z and Millennials have thought about pausing contributions. Women (38%) are more likely than men (33%) to consider pausing pensions.
Gender and salary disparities
Men were overrepresented in higher salary bands, whereas women were overrepresented in lower salary bands. This points to the median salary of female respondents being lower than men, which would likely have a knock-on in overall pension savings. In a Defined Contribution world, this may also be compounded by women living an average of four years longer than men.
The ‘Property’ vs ‘Pensions’ debate
59% of respondents believe buying a house is as good an investment as saving into a pension. This may reflect a lack of knowledge about tax advantages and pension growth or the financial pressures people face highlighting the need for financial education.
Strong desire for financial advice and guidance
42% of workers say they would benefit from support or guidance on financial wellbeing and wider retirement planning both now and in retirement. This demand is higher among Gen Z (54%) and Millennials (49%). Higher earners (£75–100k) are twice as likely to have considered financial advice than lower earners (<£25k).
One third expect to work in retirement
30% of respondents believe they will need or want to continue working after starting to receive pension income. Women (33%) are slightly more likely than men (29%) to expect to continue working. Surprisingly, Boomers (36%) are the most likely generation to expect to work in retirement, compared to 31% of Gen Z.
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