People making various facial expressions
FOR PROFESSIONAL CLIENTS ONLY

Ready or not.

How are we feeling about retirement? We interviewed nearly 1,000 defined contribution (DC) scheme participants to understand retirement readiness, savings behaviour and consumer confidence.

4 key themes

Key theme 1
There are generational differences in retirement readiness
Saving for retirement is one of many competing priorities with which participants juggle – or struggle, only Gen Xers and Pre Retirees are able to prioritise retirement.
Key theme 2
Staying on track is a concern
Only one-quarter of UK DC plan participants feel they are on track for a reasonable standard of living in retirement; and many are simply unsure.
Key theme 3
Encouraging better savings behaviours is essential
In 2024, 55% of participants feel they don’t contribute enough to their workplace pensions. Increasing contributions is one lever policy makers and employers can pull.
Key theme 4
The later life retirement conundrum
As Gen Xers and Pre Retirees near retirement, and they face the prospect of making decisions regarding retirement income generation, more guidance is a critical need.

The competing priorities when saving for retirement

BlackRock dug into the data to look at the complexities of saving for retirement across generations

Woman on her phone
Gen Z

Not looking too far ahead … yet

57% - Want to enjoy life today rather than stress too much about planning for the future.

9th out of 10 - Being on track for retirement is very low on Gen Z’s list of biggest concerns.

Man crossing his arms
Millennials

Under considerable pressure

70% - Feel unable to plan for the future, due to current financial pressures.

10th out of 10 - Being on track for retirement is bottom of Millennial’s list of biggest concerns.

Man dressed in a business suit
Gen X

The retirement industry’s lost generation?

61% - Are concerned they will outlive their savings.

3rd out of 10 - Being on track for retirement is one of Gen X’s biggest concerns.

Man with glasses and a beard wears a beanie
Pre Retirees

Focused on the transition

70% - Feel able to plan for the future, due to fewer financial pressures.

1st out of 10 - Saving for retirement is Pre Retirees number one financial priority.

Quotation start

We focus a tremendous amount of energy on helping people live longer lives. But not even a fraction of that effort is spent helping people afford those extra years.

BlackRock Chairman and CEO Larry Fink
/uk-retail-c-assets/documents/charts/uk-one/solutions/retirement-survey.csv bar-chart % column-stacked true
Uncertainty across years and generations

People feel more uncertain than ever about being on track

Q: Do you think you are on track to allow you to have a reasonable standard of living in retirement?


Pre Retirees feel most confident about their retirement, but Gen X are most concerned and feel underprepared. 

Encouraging better savings behaviours

Q: How important is putting money into a pension, and for each question please tell us how much you agree or disagree?

Pensions are recognised as being the most important – and for many, the only mechanism available to them to try to secure a reasonable standard of living in retirement.

80%
say that putting money into a pension is the most effective way to save for retirement
63%
say that putting money into a pension is their ONLY chance of a decent income in retirement

Emergency savings are key

Q: How interested would you be in [ The NEST Insight ‘Sidecar Savings’ Concept ] if that could be offered in your scheme?

Three-quarters of UK participants (76%) would value the flexibility of savings solutions such as the NEST Insight ‘Sidecar’. Gen Z and Millennials are most interested in the idea. Large proportions of both groups have fewer than three months’ ‘rainy day’ savings on which to fall back, and this solution is a ‘win-win’ in this context.

24%
Not Interested
76%
Interested
Quotation start

As a concept I really like it. It gives people that comfort that they can save, but the comfort of some liquidity. If they don't want to save into a pension, fine. They lose a tax relief. But we need to get the saving habit developed.

Head of Pensions; FTSE 100

The later life retirement conundrum

Chart shows members need help with retirement income options and worries

Q: Can you tell me whether you agree or disagree with the following?

 

Participants agreed with the following statements

75%

I would really value help calculating the income I will need in retirement

70%

It’s difficult to know how my retirement pot will translate into monthly income

65%

The thought of having to generate my retirement income worries me

60%

I worry about outliving my retirement savings

Pre Retirees need guidance

Those nearing retirement would value simple information on how much they’ll have and what is best to do with it. More than that, they need solutions that facilitate the journey into decumulation.

65%
have at best only a vague idea of how long their retirement savings might last
11%
have a very clear understanding of the options available to them to generate income in retirement
71%
would value further education on the options available to generate income in retirement
87%
of Gen X and Pre Retirees believe plan providers should offer investing help through retirement