More than one in three fear they will never be able to afford to retire as pension engagement stalls

More than one in three UK employees fear they will never be able to afford to retire, yet one in five have taken no action to review or manage their pension over the past year. 

Research from financial wellbeing and retirement specialist WEALTH at work found that 38 per cent of employees worry retirement is financially out of reach, despite 20 per cent admitting they have not engaged with their pension in the last 12 months. Among those aged 44 to 54, the figure rises to 26 per cent, while 14 per cent say they have never reviewed their pension at all.

The findings suggest many employees are anxious about their financial future but are failing to take the steps needed to improve their retirement prospects.

Even among those who have engaged with their pension, activity remains limited. Just 40 per cent have checked the value of their pension in the past year, while only 28 per cent have logged into their pension account or app. Among employees aged over 55, only 27 per cent have looked at what they are likely to have available when they retire.

The research also points to significant gaps in financial understanding. More than a quarter (27 per cent) of employees do not realise their pension is invested, while almost a third (32 per cent) say they would like a better understanding of how their pension works. More than a third (36 per cent) want more information about how much they will need to retire comfortably.

The findings come as wider industry research continues to highlight low levels of financial confidence. The Money and Pensions Service estimates that around 22.5 million UK adults do not feel they understand pensions well enough to make informed retirement decisions, while almost half lack confidence in managing their finances.

Jonathan Watts-Lay, Director at WEALTH at work, said: “Auto-enrolment has been hugely successful in getting people saving for retirement, but engagement has not necessarily kept pace. Without regular interaction, employees may be missing opportunities to improve their outcomes which includes taking steps to address any potential shortfalls early.

“The research findings suggest that a lack of understanding is a key barrier. Many people are not clear on how their pension is invested or how much they need to retire comfortably, which makes it harder to take meaningful action.

“This highlights the importance of financial education in the workplace throughout people’s working lives to build understanding, confidence and regular engagement with pensions. However, as individuals approach retirement, there is also a clear need for one-to-one retirement guidance to help people understand their options and make informed decisions when they come to access their savings.”

He added that recent research from the Pensions Policy Institute suggests retirement decisions are often made reactively rather than as part of a long-term financial plan, underlining the need for employers to provide structured financial education throughout employees’ careers, alongside personalised retirement guidance at key decision points.

The research, conducted by Opinion Matters, surveyed 2,000 UK workers with defined contribution pensions between 29 May and 3 June 2026.