‘A quarter of people have no idea how much they’ve saved for retirement’

“A quarter of people have no idea how much they’ve saved for retirement, while nearly half (47%) admit they’re not confident they’re on track for a comfortable future” 

Brian Byrnes, Head of Personal Finance at Moneybox comments: “We are facing a significant retirement crisis in the UK, so it’s encouraging to see the FCA prioritising pension savings in the next phase of the Advice Guidance Boundary Review (AGBR).

“As we transitioned from the security of defined benefit pensions our parents and grandparents enjoyed to defined contribution schemes and auto-enrolment, the responsibility and accountability for managing those assets was passed to the individual with no real support, guidance or financial education on how to plan and invest for the long term. 

“And the challenge is that most people lack financial confidence. They’re overwhelmed by financial decisions they don’t fully understand – a consequence of persistently poor financial education. With only 8% of consumers accessing financial advice, the FCA’s targeted support proposals could be transformative for the remaining 92%, equipping them with essential tools and guidance to navigate critical pension decisions.

“Our latest research underscores the urgency of this issue. A quarter of people have no idea how much they’ve saved for retirement, while nearly half (47%) admit they’re not confident they’re on track for a comfortable future. These numbers highlight a troubling gap in both awareness and preparedness.

“To truly address this crisis, the consultation must take a holistic approach, spanning the entire retirement savings journey—from accumulation to drawdown, and  we were encouraged to see the FCA’s significant ambition reflected within the proposals. While it’s crucial to support those approaching retirement in accessing their pensions, we must also focus on supporting savers earlier in life to ensure they have a decent pension pot to drawdown from when the time comes. 

“Targeted Support has the potential to revolutionize pension planning and be a real game-changer for consumers. Every saver will be supported in making crucial decisions with confidence at every stage of their journey.  From contribution levels to investment choices, providing engaging suggestions based on what will lead to good outcomes for consumers in similar circumstances will help to provide context and instill confidence, turning what feels like a daunting task into a manageable and achievable plan.”

Lily Megson, Policy Director at My Pension Expert said: “The FCA’s proposals are an encouraging step towards bridging the advice gap. For too long, millions of people have been left without sufficient support when making important yet often complex retirement decisions, and this renewed focus on pensions as a starting point reflects the urgency of addressing this issue.
 
“By offering more tailored suggestions, these measures could provide much-needed clarity and support for those struggling to explore their retirement options. However, it is important that consumers understand the distinction between targeted support and full financial advice. For some, these proposals will be a valuable first step, but comprehensive advice is often critical in achieving one’s long-term financial goals.
 
“The financial services industry has an opportunity to deliver meaningful change. Collaboration between regulators, policymakers, and providers will be key to ensuring these proposals translate into accessible and effective solutions for all savers. This is a chance to empower individuals to make informed decisions and build a secure retirement with confidence.”