UK consumers feel retirement prospects are driven more by outside forces than personal decisions

Almost half of UK consumers feel their retirement prospects are being shaped more by outside forces than their own decisions, according to worrying research from Standard Life.

The provider found that 47% of UK adults believe their retirement finances are mainly influenced by factors beyond their control and that appears to be affecting how many approach retirement planning, with 29% admitting they have done little or no preparation for later life.

However, even relatively small changes to pension contributions can have a major impact over time. According to Standard Life’s analysis, which was published today (Wednesday), someone who increases their pension contributions by just 2% above minimum auto-enrolment levels from the age of 22 could retire with a pension pot worth around £52,000 more.

Mike Ambery, retirement savings director at Standard Life, said: “It’s no surprise that many people feel their retirement finances are shaped by factors outside their control. Rising living costs, market volatility and the unexpected twists life can bring can all affect how confident people feel about the future, and people’s ability to prioritise long-term saving.”

While factors such as inflation, investment performance and unexpected life events cannot always be controlled, Standard Life said there are still practical steps people can take to improve their financial outlook and regain confidence about retirement. These include regularly reviewing pension savings, checking contribution levels and increasing payments where possible.

Where are people looking for help?

This comes as research from investment manager Invesco found that when it comes to making financial decisions, the most relied-upon source is people’s main bank, which is used by 38% of respondents. Despite the best efforts of many companies, only 6% of people look to their employers for help – a similar number as those who listen to podcasts for guidance (7%).

This was closely followed by friends and family at 37%, the survey of more than 2,000 adults found. Around 26% turn to comparison websites for guidance. Financial influencers are relied upon by 17%, the same proportion which seek information from traditional media. A similar percentage, 16%, use social media for financial information.

Independent financial advisers are consulted by 15%, while 14% are turning to AI tools such as ChatGPT or Gemini. Slightly fewer (13%) turn to online investment providers.

The Invesco analysis, revealed exclusively to Pensions Expert, comes from previously published research released last month.

Will Ellis, head of specialist funds at Invesco, said: “These findings highlight a fundamental challenge at the heart of the UK’s savings and investment landscape. This is not just an awareness issue, it’s a confidence gap. While policymakers are rightly focused on improving access through targeted support and clearer disclosure, a significant segment of the population lacks the understanding needed to take the first step into investing.”