Confidence in achieving a comfortable retirement has improved among UK workers, but persistent demographic and income disparities underscore the need for more inclusive industry and regulatory action, according to Aegon’s latest research.

The 'Second 50' report revealed that 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.

Aegon said this marked a significant upward trend in optimism about long-term financial well-being.

However, despite this positive shift, the findings highlight deep divides across the workforce.

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

Men (43 per cent) were also far more likely to feel confident than women (23 per cent).

Meanwhile, income proved an even greater dividing line, with only 18 per cent of low-income workers feeling confident about their retirement prospects, compared with 71 per cent of higher earners.

Aegon pensions director, Steven Cameron, suggested that the increase in overall confidence could be linked to economic improvements such as earnings growth outpacing inflation and interest rates stabilising, but warned that the uneven distribution of confidence reflected “age-old challenges” in retirement planning, particularly for women and lower earners.

He stressed the need for greater access to education, guidance and advice, pointing to the Financial Conduct Authority’s (FCA) evolving targeted support framework as one way of closing the gaps.

“It’s vital that individuals have access to help to prepare financially for the second half of their lives. Better insights and taking control are vital to help close these confidence gaps,” added Cameron.

The FCA’s consultation on targeted support, launched earlier this year, is designed to bridge the advice gap by allowing providers to give more tailored help to savers who are unwilling or unable to pay for full financial advice.

Industry bodies have broadly welcomed the proposals, though concerns persist about how clearly the regulator will define the boundary between guidance and advice, with some calling for a “safe harbour” to give firms confidence in engaging with the new regime.

Nonetheless, the FCA has described the reforms as a “once-in-a-generation” shift in consumer engagement with retirement saving, with the regulator “very confident” that the framework will be in place by the end of 2025 or early 2026.

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