The Retirement Knowledge Crisis: Why the UK Is Sleepwalking into Later-LifePoverty

“Most people are dreaming of retirement without ever checking the price tag.”

‍

Introduction: The Retirement Illusion

Retirement in the UK is often imagined as a time of freedom — travel, family, new hobbies, perhaps even a move abroad. But while the dream is alive, the planning is dangerously absent.

A new study from consultancy Barnett Waddingham reveals the scale of the disconnect between aspiration and action.
According to their 2025 report, The At Retirement Reckoning, an overwhelming 87% of UK adults have strong ideas about what they want from later life. But only 15% have actually created a financial plan to support those ambitions .

At RetirePlan, we believe this knowledge gap is a looming crisis — but one we can solve with better tools, clearer guidance,and a little motivation. In this article, we unpack the key findings of the report, explore what they mean for you, and show you how to take back control of your future.

‍

Aspirations Are High… But the Planning Isn’t

The data paints a vivid picture of how peopleview retirement:

36% want to travel
32% hope to spend more time with family
31% want to pursue hobbies
26% want more quality time with their partner

Some even have more ambitious dreams:

21% of 18–34-year-olds plan to retire broad
6% hope to start a business in retirement

But only a tiny minority have a realistic financial roadmap:

Just 15% have set clear goals and a budget
Among 55–64-year-olds — those on the cusp of retirement — that rises only slightly to 17%
Men (19%) are more likely than women (12%) to have a retirement plan

This is a huge red flag. People are planning their retirement lifestyle without understanding whether they can afford it.

👉 Use the RetirePlan Pension Calculator to estimate your retirement income and see how close you are to your goals.

‍

The Generational Gap in Understanding

Younger workers are full of aspiration — and time is on their side. But the report shows a widespread lack of awareness about:

How much income they’ll need
How pensions grow and are taxed
When and how they can access their funds

This isn’t just a problem for the young. Many people in their 50s — with retirement just around the corner — still haven’t reviewed their pensions or modelled their likely income.

“Among those aged 55–64 — closest to retirement — just17% have a financial plan.”

‍

📘 Read our free Pensions eBook for a jargon-free guide to pensions, retirement income, and tax-free lump sums.

‍

Advice Isn’t Reaching People

A major contributor to the crisis is the failure of traditional financial advice to reach the people who need it most.

Why?

Cost: Many assume advice is expensive or only for the wealthy.
Trust: Some fear being sold products rather than receiving impartial guidance.
Complexity: The system is filled with jargon — leaving people confused or overwhelmed.

But inaction carries far greater risk than abad investment. It could mean retiring too early, living with less than expected, or even running out of money.

‍

The Consequences of Inaction

Without proper planning, the dangers are clear:

Being forced to delay retirement
Facing a sharp drop in living standards
Missing out on tax advantages or lost contributions
‍
Relying too heavily on the State Pension, which may be insufficient for a comfortable life

‍

At RetirePlan, we believe retirement should be designed — not drifted into.

Start with our Pension Calculator to model your income based on your savings, goals, and retirement age.

‍

How RetirePlan Helps Bridge the Gap

We created RetirePlan to help people like you take control — with tools and guidance that are:

· Easy to use

· Designed for real life, not just financial theory

· Focused on lifestyle, not just numbers

‍

Here’s whatyou can do next:

1. Use Our Pension Calculator

Model your expected income from definedbenefit and defined contribution pensions — including future contributions andtax-free lump sum options.

👉 Try the Pension Calculator

2. Explore Lifestyle Planning Tools

Our retirement planning system helps youbalance your income against your lifestyle goals — travel, family, hobbies,home improvements and more.

👉 Build Your Lifestyle Plan

3. Read the RetirePlan PensionseBook

Our free eBook breaks down the essentials ofUK pensions — from how much you’ll need, to how to draw income tax-efficiently.

👉 Download the Pensions eBook

Final Thought: It’s Never Too Early — or Too Late

The Barnett Waddingham report is a timely reminder that hope isn’t a strategy. Most people have retirement dreams. But without knowledge, planning, and support, those dreams may remain just that —dreams.

RetirePlan is here to help you turn them into reality.

Start your plan today. Because retirement isn’t the end — it’s your next adventure.

‍

Back

The Retirement Illusion