Recent research by Nucleus reveals that UK adults are becoming less confident about their retirement. Its ‘Retirement Confidence’ index score for 2025 has fallen year on year. So why the fall? The increased daily cost of living was the main reason given (by almost half those surveyed) that prevented people from saving more into their pensions or saving for their retirement generally, alongside lack of knowledge about pensions and investments generally. Plus, the constant tinkering with pensions policy affects confidence to make, and then work to achieve, plans without fear of the rug being pulled from under them.

It left only just over a quarter of those surveyed feeling confident they would have enough to live comfortably for the rest of their lives. So how do you regain retirement confidence? As always, the key is planning – and starting as early as possible.

Understand your money. Set your goals.
Without doubt we are in a challenging period but being actively engaged in planning your financial future allows you to feel steady even when circumstances fluctuate. But there’s still the feeling among many that there’s no need to consider financial advice until retirement looms. One of the clearest messages from the research was the need for people to start planning and saving for retirement as early as possible, ideally in their 20s.

Learning about financial planning at an early age is also a crucial factor in developing retirement confidence. It’s true, when you understand the landscape you’re in you can make decisions with greater confidence rather than reacting out of uncertainty or fear. But while knowledge and making well-informed decisions are important, affordability remains a huge challenge for many for retirement planning. In addition, potential changes to the pensions landscape, including the mercurial retirement age, adds to the feeling of having no control over your future life.

But confidence remains high among those who take or have taken financial advice, with those taking paid-for advice being most confident. However, it’s not a ‘do it once then leave it’ situation. Your plan for your future needs regular revision. Lifetime cash flow forecasting allows you to see how your financial decisions now will affect your plans for later life. It also allows us to find the weak points in a plan and ensure it remains robust enough to withstand those random occurrences that life can throw up. Knowing you have this in hand is where real confidence in your financial future can grow.

Pensions are a long-term investment and planning for retirement is a long-term process. Planning and saving for retirement as soon as possible, taking qualified financial advice, and broadening access to financial education for young people, will contribute to greater retirement confidence overall.