People with well-developed retirement finance plans are four times less likely to feel stressed about their long-term financial situation (11 per cent) than those without a plan (46 per cent), yet 30 per cent of people in the UK admit they don’t have any kind of retirement plan, according to research by Aegon.

Aegon’s 'Second 50' report also revealed that more than half (57 per cent) of people without a retirement plan worry about running out of money in later life.

This was more than double the number (22 per cent) of those who do have a financial plan in place.

Aegon head of pensions, Kate Smith, noted that with life expectancy increasing over the past decade and ongoing economic challenges prompting people to think more deeply about their finances, it is becoming “increasingly important” for individuals to create a clear plan for their retirement finances.

She stressed that a financial plan could not only help individuals “navigate the known and unknown costs of later life” but as the research shows also has value in providing peace of mind and confidence, as well as reducing stress.

“We all deserve a retirement we can enjoy, whatever your financial reality,” she said.
However, she added that having a plan doesn’t mean following strict rules every day or creating a “big, scary document”.

Instead, she said it was simply about savers understanding what they have, what they will need, what they would like to do, and then “reviewing it every now and then can be just as effective”.

In addition to these findings, Aegon released earlier research as part of their 'Second 50' report, which showed that confidence in achieving a comfortable retirement has improved among UK workers.

A third (33 per cent) of UK workers now feel very or extremely confident about retiring with a comfortable lifestyle, up from 22 per cent in 2023 and 30 per cent in 2024, marking a steady rise in optimism about long-term financial security.

However, the research also highlighted persistent demographic and income disparities, underscoring the need for more inclusive industry and regulatory action.

Confidence was highest among younger workers, with 55 per cent of those aged 25-34 expressing strong optimism, compared with just 14 per cent of those aged 45–54.

Similarly, men (43 per cent) were almost twice as likely as women (23 per cent) to feel confident about achieving a comfortable retirement, illustrating these gaps.

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