Initial findings from Trafalgar House's fifth Trust & Confidence Index of the pensions industry have revealed a decline in public trust for the first time since the surveys began.

This year's survey showed trust in the pensions industry has slightly declined to 5.23 out of 10, down from a peak of 5.26 in 2024.

This follows a steady rise in previous years, from 4.46 in 2020 to 4.63 in 2021 and 4.95 in 2023.

The research, covering a broad spectrum of more than 2,000 people over 18, was completed at the beginning of 2025.

Conducted annually, it explores the level of trust in pension providers, the factors that influence this trust, and the overall sentiment towards pensions among the UK population.

Trafalgar House client director, Daniel Taylor, said that while the shift in trust might seem minor, it was nonetheless "concerning".

"Digging into the data, the most common response to our question about trust in the pensions industry was a flat 5 out of 10—a clear sign of indifference," he said.

"Over 20 per cent of respondents chose this neutral score, but the real concern lies at the extremes."

"Alarmingly, 7.3 per cent of people scored 0, indicating no trust in pension providers," Taylor claimed.

"In contrast, only 3.8 per cent were awarded a full 10, suggesting deep trust is rare."

"This raises an important question: Is this level of mistrust truly justified, or does it reflect a broader issue—perhaps a fundamental lack of understanding?

"People tend not to trust what they don't fully understand — and for many, pensions remain a distant and complex concept," he said.

Taylor suggested that age also played a role in the findings: "Younger respondents (18–34) were notably less trusting, perhaps because pensions simply aren't top of mind regarding financial priorities.

"In contrast, those aged 55 and over were more neutral or moderately trusting, likely due to having had more exposure to and experience with the system."

However, Taylor argued that the most striking finding was that 15.8 per cent of respondents—including 10.7 per cent of men and 20.6 per cent of women — said they "don't know" how much they trust pension providers.

"This isn't just uncertainty—it signals a serious failure by the industry to communicate its value in a way that resonates," he added.

Taylor concluded: "Clearly, trust remains fragile, varies widely across demographics, and is further strained by widening engagement gaps.

"The industry should be worried about any dip in confidence. While it may seem minimal – and could potentially even be dismissed as just a reflection of sentiment on the day – the reality is that we were starting from an already low base."

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