Confidence in day-to-day life has improved among UK employees, with more people feeling positive about their work, health and finances, yet concerns about retirement continue to weigh heavily on long term outlook.
More than half of workers described their overall situation as positive, with optimism reaching its highest level in several years. Many reported feeling good about their work life balance, physical health and working lives, pointing to a workforce that is, in many respects, recovering confidence after a turbulent period.
But this more upbeat picture breaks down when employees look further ahead, particularly at their financial future in retirement.
Retirement planning remains a major concern
Retirement planning was the weakest rated area across all aspects of life, with far fewer workers describing it positively compared with other areas such as work, health and day to day finances, according to data published by investment management firm Fidelity International as part of a global sentiment survey of working adults.
Confidence in achieving longer term financial goals also lagged behind short term priorities. Employees were more likely to feel positive about maintaining their current lifestyle or paying off debts than about retiring comfortably or preparing for later life.
At the same time, half of UK employees said their retirement savings had caused them stress in the past six months, making it one of the most significant financial pressures reported.
Financial stress driven by long term uncertainty
Wider economic pressures continue to shape how employees feel about their finances. The cost of living and rising inflation were cited as the biggest sources of stress, followed by concerns about the wider economy and global political events.
But longer term financial security emerged as a particularly acute concern. Saving enough for retirement and meeting long term financial goals were more likely to cause stress than short term priorities such as managing day to day expenses or paying down debt.
Daniel Smith, head of workplace investing distribution at Fidelity International, said many employees were struggling to connect their current financial decisions with future outcomes. “Our findings highlight a growing need for solutions that help employees plan their finances in a more joined-up way.
“While many feel comfortable managing their short-term financial commitments, longer term planning – particularly preparing for retirement – remains much harder to navigate. Employees increasingly want to see their full financial picture in one place and understand how decisions today affect their future.”
Employer support linked to higher job satisfaction
The research also pointed to a clear link between financial support at work and employee experience. Workers who received financial wellbeing support from their employer reported higher levels of job satisfaction than those who did not.
Smith said employers had an important role to play in helping staff build confidence around long term financial planning.
“Support through the workplace is critical. As trusted sources of information, employers are uniquely positioned to provide access to tools, education and resources that can build financial confidence – from access to digital platforms that bring together savings, pensions and investments, to in-person guidance and coaching that can help employees to make informed choices.
“When employees feel equipped to plan for the long term, businesses may also benefit from a more engaged, productive and resilient workforce.”
He added that investment in digital tools and more tailored support would be key to improving outcomes. “We are making a significant investment in the solutions we offer to clients and their employees this year, both through the development of digital tools which use AI to offer a more personalised approach to planning, both before and during retirement, and as we broaden our range of investment propositions to provide a greater certainty of income in later life.”
The study draws on responses from 1,000 UK employees as part of a wider global survey covering more than 38,000 workers across 35 markets.
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
