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Many employees are thinking about retirement, but far fewer have turned those thoughts into a clear plan.
Our 2026 report, Workplace pensions – retirement ready?, surveyed 3,500 UK employees with a workplace pension prepare for retirement, where they seek support and how confident they feel about the decisions ahead.
Key findings on employee attitudes towards retirement
- 51% of employees have thought a lot or quite a lot about their financial needs in retirement.
- Only 18% have a clear retirement plan.
- 64% have never sought advice or help about how much to save into their pension.
- 63% have never sought advice or help about their retirement options.
- 52% of employees with a defined contribution workplace pension do not understand income drawdown or have not heard of it.
- The average ideal retirement age is 62 years and 5 months, compared with an average expected retirement age of 65 years and 7 months.
Is retirement planning turning into action?
51% of employees have thought seriously about their financial needs in retirement, but only 18% have a clear retirement plan. Employers can help bridge the gap by making retirement planning part of regular pension communications, rather than waiting until retirement approaches.
Are employees on track for the retirement they want?
Employees would ideally like to retire at 62 years and 5 months, but the realistic expected retirement age is 65 years and 7 months. Helping employees engage with retirement planning earlier could support more informed decisions about their future.
Do employees know where to get support?
64% of employees have never sought help about how much to save into their pension, while 63% have never sought support about their retirement options. Employers can help by making information, guidance and regulated advice easier to find and understand.
Could Targeted Support help bridge the gap?
50% of employees said they would be likely to use Targeted Support, including 42% who had not previously heard of it. This suggests there may be demand for more accessible and actionable support alongside information, guidance and financial advice.
Are mid-life employees falling behind?
Just 13% of employees aged 35-49 have a clear retirement plan, while 68% have never sought advice or help about their pension savings. Yet 44% have given significant thought to retirement, suggesting awareness doesn't always lead to action.
Are communications reaching everyone?
The research identified differences in retirement confidence and engagement across the workforce. Employers can use these insights to review whether communications are inclusive, relevant and timely for employees at different life stages.
Do employees understand their choices?
48% of employees paying into a defined contribution pension don't understand income drawdown or haven't heard of it. This figure rises to 59% among women, with even 45% of employees aged 50–69 feeling the same.
Are employees ready for retirement income decisions?
Employees may need to consider drawdown, annuities, lump sums or a combination of options. Employers don't need to explain individual choices, but they can help employees build understanding through clear communications and signposting to support.
Practical actions for employers
Here are five simple steps you can take to support your employees' futures and help them make the most of their workplace pension:
- Regularly review and improve your pension communications to ensure all employees understand their options, benefits, and the impact of their decisions
- Help employees understand the Retirement Living Standards so they can plan for the lifestyle they want in retirement
- Promote employer pension contribution matching schemes and make increasing contributions straightforward
- Raise awareness of online pension tools and encourage regular engagement with their pension
- Share information on managing and transferring pensions, helping to reduce complexity and build confidence.
Help your workforce move from saving to planning
Workplace pensions have created a strong foundation for retirement saving, but the next challenge is helping employees build the confidence and understanding to act. Timely communications, accessible tools and visible support can help employers make retirement planning a more meaningful part of their financial-wellbeing strategy.
Workplace pensions: How much is enough?
Our 2025 report 'Workplace pensions: How much is enough?' explored the role of workplace pensions in helping to build financial resilience and whether employees were saving enough for the retirement lifestyle they wanted.