The pensions industry has been urged to take action, after research from Trafalgar House revealed a "persistent" generational divide in pension engagement and trust, suggesting that younger people and women are more wary of the pensions industry.

Trafalgar House's Trust & Confidence Index previously revealed a dip in public trust in the pensions industry, marking the first decline since the index began.

However, it has since shared further details on the trends behind this, revealing a "pronounced" gender gap, as some 43.1 per cent of men rated their trust in pensions at 6 or above, compared to 33.5 per cent of women.

It also found that a significant portion of respondents selected "not applicable," indicating they do not have a pension provider.

This was especially common among those under 34, which Traflagar House highlighted as a "worrying engagement gap", suggesting that many younger people may not yet see pensions as relevant to their lives.

A similar trend was seen when respondents were asked about interactions with their provider, as while 29.4 per cent of all respondents said they hadn’t engaged with their provider in the past 12 months, this rose to almost 50 per cent among 18–24-year-olds.

However, whilst older savers were more likely to have engaged with their pension provider, Trafagar House found that older age groups also tended to describe their interactions as neutral or only mildly positive, while younger savers were more likely to report positive experiences.

And whilst younger savers were less engaged, the analysis suggested that they are more confident, revealing that younger people aged 18–34 were more optimistic, while older respondents aged 55 and over were more likely to disagree or remain unsure when asked whether their pension would allow them to live comfortably.

Older age groups, particularly those aged 55 and over, were also more likely to lack confidence in their pension’s ability to support them in retirement.

Trafalgar House warned that this is especially concerning, given their proximity to retirement and the limited time available to take corrective action.

In contrast, it found that younger age groups, particularly those aged 18 to 34, tend to prioritise digital tools such as self-service websites and apps when it comes to building trust.

However, Trafalgar House emphasised many in this group remain disengaged or do not have a pension provider, with client director, Daniel Taylor, highlighting the results as evidence that the industry is "at a crossroads".

He stated: "Trust is fragile, younger people are disengaged, and older savers are uncertain.

"The industry must address the concerns of older generations, particularly around the adequacy of savings and retirement income security - this could include providing tailored advice and support, clearer projections, and more flexible retirement options.

"For younger audiences, the industry must leverage technology to meet them where they are - online and on their phones. Without digital-first solutions, the pensions industry risks becoming irrelevant to an entire generation.”

Above all, however, Taylor argued that "pensions need to be demystified and made relevant and relatable to everyone in order to rebuild confidence".

"The stakes are high," he warned. "Without action, the industry risks losing the trust of younger generations and failing to meet the needs of older ones.

"But with the right strategies, it can build a more inclusive, transparent, and engaging system that empowers people to plan for a secure and comfortable retirement.”

---