Almost half (48 per cent) of UK workers are either unsure or do not believe they are on track for their desired retirement, despite nearly three-quarters (72 per cent) saying they understand their workplace pension, research from Like Minds has revealed.

The findings, published in Like Minds’ No Member Left Behind report, highlighted what the pensions communications agency described as a growing “retirement confidence gap”, with workers feeling far less confident about retirement planning than managing their day-to-day finances.

Based on a survey of 2,008 workplace pension scheme members, the research found that 68 per cent of respondents felt confident managing their everyday finances, compared with just 53 per cent who felt confident planning for retirement.

The report suggested that while automatic enrolment has succeeded in bringing millions more people into pension saving, many savers remain uncertain about whether they are doing enough to achieve the retirement they want.

Indeed, 45 per cent of respondents expected they would need to make lifestyle changes in retirement.

Like Minds, which is part of Independent Governance Group (IGG), also identified significant differences between demographic groups.

Women were found to be considerably less confident about retirement planning than men, with just 40 per cent saying they felt confident compared with 63 per cent of men.

Meanwhile, members aged between 45 and 54 were identified as one of the groups most at risk, with the report showing they were more likely to feel overwhelmed by retirement planning and less likely to believe they were on track for retirement.

The research also highlighted communication challenges within defined contribution (DC) schemes, with 28 per cent of DC members saying pension communications were confusing, compared with 16 per cent of defined benefit (DB) members.

In addition, members with conditions or disabilities affecting their communication needs were three times more likely to say pension communications did not meet their needs.

The report suggested pension communications were failing to cut through, with only 44 per cent of members recalling receiving a pension communication in the previous 12 months.

Of those who remembered receiving one, just 21 per cent said they took the action requested.

Members said they wanted communications that used everyday language rather than technical terminology, clearly explained why information mattered, and provided step-by-step instructions.

Commenting on the findings, Like Minds director, Jeremy Petty, said: “Despite the policy success of auto-enrolment nearly 15 years ago, there is a well-documented pension savings gap in the UK. This is being exacerbated by the crisis of confidence we see.

“Far too many pension scheme savers don’t just feel left behind by the industry - they feel left adrift amid overly technical language and bewildering complexity.

“Many understand the basics of their pension, but that understanding is not translating into confidence about whether they are on track, what retirement will look like, or what steps they should take next.

“That matters because confidence drives action. People who feel informed and supported are more likely to engage with their pension and make decisions that improve their long-term financial wellbeing.

“The pensions industry has made enormous progress in getting more people saving. The next challenge is making sure those savers are not left to navigate retirement planning alone. That is why we are calling on the sector to ensure there’s No Member Left Behind.”

---