Nine in ten pension savers (92%) would retire earlier than they currently plan to if they could afford to, according to new research from workplace pension provider Penfold.
The findings point to a significant gap between retirement aspiration and retirement reality among UK workers. Separate Penfold research found that 43% of UK employees are not confident their pension will fund a comfortable retirement, and fewer than one in five describe themselves as very confident about their retirement prospects.
Part of the challenge is visibility. Penfold's research found that 82% of employees face at least one barrier to taking a more active role in their pension, with complexity and a sense that retirement feels too distant cited most often, leaving many without a clear picture of whether they are on track or what they would need to change to retire on their own terms.
Cost of living pressures are adding another challenge. Thirteen percent of UK employees have reduced, paused or stopped their pension contributions in the last 12 months, showing the difficult trade-offs some workers are making between today’s financial pressures and saving for later life.
"What stands out from this survey is just how many people would choose to retire earlier if their finances allowed it," says Chris Eastwood, CEO and co-founder at Penfold. "But wanting to retire earlier and knowing how to get there are very different things. Without a clear sense of what their pension is likely to produce in retirement, it can be difficult to plan or know what steps to take.
"That makes understanding what you are on track for really important. A pension balance on its own only tells you so much. Giving people a clearer picture of what their savings could mean for later life, alongside information and guidance on the options available to them, can help them make more informed decisions about their future,” concluded Eastwood.
