Confidence in retirement amongst UK savers has remained stubbornly low for the third consecutive year, according to the latest MFS Global Retirement Survey 2025, as just 27 per cent of UK retirement plan members said they felt confident about retiring at their desired age.

This marked a marginal increase of one percentage point from 2024, while around a quarter said they no longer believe they will be able to retire at all, and three-quarters acknowledged that they would need to save more than originally planned to achieve financial stability in later life.

The results, based on responses from more than 700 UK retirement plan members and almost 350 retirees, suggested that concerns over financial resilience are now deeply embedded, despite recent market recovery and policy efforts to improve outcomes for defined contribution (DC) savers.

MFS Investment Management institutional relationship director, Kim Crabtree, warned that while it's "natural" for financial concerns to prompt adjustments, it was crucial for investors to stay focused on long-term goals.

“Remaining invested over the long term allows members to benefit from compounding returns and ride out market fluctuations, ultimately helping secure a more stable retirement,” she added.

The survey also found that over the past year, 30 per cent of UK savers made changes to their retirement investments, slightly down from 32 per cent in 2024.

However, worries about inflation and living costs remained acute, as half of the respondents cited inflation’s impact on purchasing power as their top financial challenge, while 46 per cent pointed to housing costs.

Indeed, the proportion struggling to manage day-to-day financial obligations also rose from 31 per cent in 2024 to 35 per cent this year, underscoring the ongoing strain of the cost-of-living crisis.

These concerns mirrored the findings of MFS’s 2024 and 2023 surveys, which showed that economic uncertainty and rising expenses had left many members feeling unable to plan effectively for the long term or confident in their ability to generate sufficient income in retirement.

In addition, the latest research highlighted a growing disconnect between expectations of a phased retirement and the reality experienced by many retirees.

While 70 per cent of current members expected to reduce work gradually, only 35 per cent of retirees said this had been their experience.

Conversely, 62 per cent of retirees reported that their working life ended abruptly, compared with just 17 per cent of workers who expected a “hard stop”.

“The stark contrast between expectations and reality highlights the importance of preparing for unexpected retirement scenarios,” Crabtree said, noting that health issues, job loss, or caregiving responsibilities can all force earlier-than-planned exits from the workforce.

The report also explored how different generations approached financial advice.

It found that Gen Z participants were most likely to turn to online sources, reflecting their digital-first mindset, while Millennials preferred a mix of virtual and in-person advice.

Gen X respondents tended to rely on employers and plan providers, while Boomers continued to favour traditional face-to-face consultations, albeit with growing engagement in online resources.

Notably, predictability of payments emerged as the top priority for both members and retirees, closely followed by flexibility in withdrawals.

“Predictability of payments is key for DC pension members in the UK,” stressed Crabtree.

She argued that while flexibility was valued, the assurance of consistent income empowers individuals to plan their retirement with confidence and security.

Meanwhile, interest in environmental, social and governance (ESG) investing within retirement plans also remained strong, with 75 per cent of respondents expressing enthusiasm for sustainable options.

Gen Z showed the highest interest at 88 per cent, followed by Millennials at 83 per cent, while Gen X and Boomers registered lower but still notable levels at 68 and 66 per cent, respectively.

Crabtree concluded that the survey findings underscored “a sobering reality”.

She urged pension providers to prioritise clear, jargon-free information and digital tools that empower members with personalised projections and practical guidance.

“Bridging the gap between complexity and confidence will be essential to help savers feel more secure about their financial futures,” she added.

The findings add to a growing body of evidence highlighting a crisis of confidence in the UK’s retirement landscape.

Recent research has pointed to widespread uncertainty about retirement readiness, with cost-of-living pressures, inflation and complex pension choices continuing to weigh heavily on savers’ outlook.

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