05 September 2025
Trafalgar House, a specialist third-party pensions administrator, today released further findings from their fifth Trust & Confidence Index of the pensions industry, highlighting a persistent generational divide in pension engagement and trust.
Earlier this year, Trafalgar House reported a dip in public trust in the pensions industry, marking the first decline since the Index began. The average score fell slightly to 5.23 out of 10, down from a peak of 5.26 in 2024, despite consistent growth in previous years (rising from 4.46 in 2020 to 4.95 in 2023).
The gender gap remains pronounced. Some 43.1% of men rated their trust in pensions at 6 or above, compared to just 33.5% of women. A significant portion of respondents selected “Not applicable,” indicating they do not have a pension provider. This was especially common among those under 34, pointing to a worrying engagement gap and suggesting that many younger people may not yet see pensions as relevant to their lives.
When asked about interactions with their provider, 29.4% of all respondents said they hadn’t engaged with their provider in the past 12 months. This rose to almost 50% among 18–24-year-olds, indicating a widespread disconnect. Men and younger savers were more likely to report positive experiences, while older age groups tended to describe their interactions as neutral or only mildly positive.
Confidence in retirement readiness was also low. Just 26.3% of respondents agreed that their pension would allow them to live comfortably, with only 6.8% strongly agreeing. In contrast, 36.0% disagreed. Younger people aged 18–34 were more optimism, while older respondents aged 55 and over were more likely to disagree or remain unsure.
Younger age groups, particularly those aged 18 to 34, tend to prioritise digital tools such as self-service websites and apps when it comes to building trust. However, many in this group remain disengaged or do not have a pension provider, highlighting a critical gap in engagement.
Meanwhile, older age groups, particularly those aged 55 and over, are more likely to lack confidence in their pension’s ability to support them in retirement. This is especially concerning given their proximity to retirement and the limited time available to take corrective action.
Daniel Taylor, Client Director at Trafalgar House, commented: “What these results really show is an industry at a crossroads. Trust is fragile, younger people are disengaged, and older savers are uncertain. The industry must address the concerns of older generations, particularly around the adequacy of savings and retirement income security – this could include providing tailored advice and support, clearer projections, and more flexible retirement options. For younger audiences, the industry must leverage technology to meet them where they are – online and on their phones. Without digital-first solutions, the pensions industry risks becoming irrelevant to an entire generation.”
Taylor continued: “Above all, pensions need to be demystified and made relevant and relatable to everyone in order to rebuild confidence. The stakes are high. Without action, the industry risks losing the trust of younger generations and failing to meet the needs of older ones. But with the right strategies, it can build a more inclusive, transparent, and engaging system that empowers people to plan for a secure and comfortable retirement.”
(ENDS)
