New Research Reveals Widespread Lack of Retirement Readiness as UK Overlooks Professional Advice

A new YouGov study commissioned by Unbiased, the UK’s leading marketplace for finding financial advisers, reveals that a majority of UK adults feel unprepared for retirement. Amidst rising living costs and ongoing economic uncertainty, hesitation over long-term financial planning is leaving many unsure about their ability to save enough for the retirement they want.

Among those surveyed, younger adults aged 18-34 years are more confident about their retirement (44%) compared to those aged 45+ (31%), suggesting that many are reaching their later years potentially facing financial insecurity.

A significant gender gap remains, with only 29% of women feeling confident about their retirement, compared to 42% of men, highlighting the persistent gender inequalities in financial planning and the need for solutions to close the Gender Pensions Gap.

Despite widespread concerns over not having enough time to save, the data reveals a worrying disconnect in personal retirement planning as 75% of working UK adults who have a pension pot do not know its current estimated value, while 26% of all working UK adults do not know how much they hope to live on annually after they retire.

In addition to limited personal understanding, many people lack the broader contextual knowledge necessary for effective retirement planning. Key pension terms such as “defined benefit” (70%), “defined contribution” (64%), and “triple lock” (56%) remain unclear to a large portion of the population, highlighting considerable shortcomings in overall retirement literacy.

Against this concerning backdrop, only 20% of people report using a professional financial adviser for retirement advice, with family and friends being the most common source at 29%. Given the broader findings, this reliance on informal advice may be contributing to the ongoing challenges in retirement readiness.

However, among those who use financial advisers, many report gaining a clearer understanding of their financial goals (36%) and even experience reduced financial stress (26%).

Karen Barrett, CEO and founder of Unbiased, comments:

“Preparing for retirement is one of the most important financial steps we can take in life, but it can feel daunting. And, as our research shows, too many people in the UK are approaching retirement without a clear plan.

“It’s crucial not to bury your head in the sand. Getting an informed plan in place as early as possible is key. Speaking with a professional can help cut through the jargon and give you the confidence to make the right decisions for your future.

“At the same time, the advice industry must work harder to lower the barriers to accessing quality advice, especially for those with fewer assets. Government action on mandatory pension schemes, education, and public awareness is also critical to improving the nation’s retirement readiness.”