An interactive investor survey paints a sobering picture of pension saving in the UK, highlighting rising debt, delayed retirements and shortfalls in financial literacy.
As pension pressures mount across the UK, research by investment platform interactive investor found that confusion, disengagement and financial stress continue to plague UK retirement planning.
The sixth iteration of its ‘Great British Retirement Survey’ found that all generations expect to fall short of a comfortable retirement.
Just one in 10 survey respondents described themselves as retired in their late 50s, down from 15% in 2023. Meanwhile, more than half (56%) of those aged 61-65 are still working, up from 50% two years ago.
The majority (92%) of Gen Z (aged 18-28) and 62% of Millennials (29-44) said they do not know what age they expect to retire. Four in 10 of the Gen Z cohort added that they expect to derive their main income from working in retirement.
Meanwhile, around 40% of those aged 55-60 are concerned about saving enough to have comfortable retirement, compared to 31% in 2023.
When considering the gender gap in pension saving, interactive investor found that women have lower financial expectations for retirement and expect £150,000 by retirement age, compared to £250,000 for men.
Richard Wilson, chief executive at interactive investor, said that, since the first report was published in 2019, “the nation’s finances continue to be tested”.
“A period with five prime ministers, two general elections, a global pandemic and a cost-of-living crisis has left many families focusing on their short-term financial needs and longer-term financial resilience put on the back burner.”
As such, the financial security of many across the UK has been “eroded”, he said, noting that more people are in debt compared to two years ago, when the last survey was conducted.
The number of respondents to the survey with unsecured debt has risen from 39% in 2023 to 43% in 2025, with interactive investor seeing the biggest rises in older cohorts.
In addition, 27% of Gen Z have defaulted on a bill or debt payment for three or more months during the past six months.
“Against this uncertain backdrop, many have little spare to bolster their long-term retirement savings,” he said.
“Many pension savers are on track for financial insecurity in retirement and they are increasingly worried.”
People are depending more on financial support from their parents, with living inheritances for those over state pension age increasing from 15% in 2023 to 19% in 2025. In addition, 23% of over-65s are planning to give a living inheritance in the next three years, up from 18% in 2023.
The majority (56%) of respondents said they expect to receive or have received an inheritance. This figure increases to 65% among Gen X aged 55-60.
The issue of financial education was also raised within this survey, with interactive investor finding that 42% do not know the pension pot required for a comfortable retirement and 34% of pension savers do not know how much they expect to have saved by retirement.
Furthermore, 44% said they are “unclear” on how to manage income in retirement and 46% do not know if their fund de-risks as they approach retirement.
A big chunk of Baby Boomers (41%), who are aged 61-79, are also not aware of the introduction of inheritance tax on pensions.
“If we can change the culture around pensions and make it something everyone can actively engage with rather than passively accept, we may well be able to break at least some of that sense of overwhelming fatigue and confusion,” said Wilson.
The Great British Retirement Survey asked 9,000 respondents across the UK between 13 February 2025 and 29 April 2025 about their retirement plans and financial worries.