Overview
UK employees are more optimistic about their lives than at any point in the last five years. Yet beneath this positive outlook lies a persistent challenge for employers: retirement planning remains a major source of stress and uncertainty for the workforce.
New findings from our latest Global Sentiment Survey reveal that overall optimism among UK employees rose to 54% in 2025, up from 48% just two years ago. Employees report feeling positive about their work, health and day-to-day finances, suggesting that many have regained confidence following recent economic disruption.
However, retirement planning stands out as a clear outlier.
- Fewer than four in ten employees rate their retirement planning positively, while almost a third describe it as poor.
- Confidence drops further when employees consider long-term goals, with fewer than one in three believing they are on track to retire comfortably.
Short-term confidence, long-term anxiety
The research highlights a growing disconnect between short-term financial confidence and long-term financial security. While many employees feel capable of managing everyday finances, half say that saving enough for retirement has caused them stress in the past six months.
This matters for employers. Financial stress does not exist in isolation — it affects engagement, productivity and retention. The survey shows that job satisfaction is significantly higher among employees who receive financial wellness support through the workplace, compared with those who do not.
At the same time, wider pressures such as rising living costs, inflation and economic uncertainty continue to weigh on employees’ minds, amplifying concerns about long-term financial resilience.
Why the workplace matters?
As employees struggle to connect today’s financial decisions with their future outcomes, the workplace is becoming an increasingly important source of support.
Daniel Smith, Head of Workplace Investing Distribution, highlights the need for a “more joined-up approach to financial planning”. “Employees are often comfortable managing immediate priorities, longer-term planning, particularly retirement, remains complex and difficult to navigate alone”.
“Employees are looking for clarity. They want to understand their full financial picture and how savings, pensions and investments fit together over time. Digital tools that bring these elements into one place, combined with education and access to guidance, can help turn long-term planning from a source of anxiety into a source of confidence”.
“Supporting financial wellbeing is no longer just an employee benefit — it is a strategic lever for businesses. When employees feel more confident about their financial future, they are more likely to be engaged, resilient and focused at work”.
As optimism returns across many aspects of working life, employers have a timely opportunity to address the area where confidence still lags. By strengthening retirement and financial planning support, organisations can help employees move from short-term stability towards long-term security — benefiting both individuals and the business”.
Find out more
As we continue to support financial wellbeing, we emphasise the significance of making informed financial decisions. By doing so, employees can be on their way to confidently manage their financial priorities and enjoy a secure retirement.
Reach out to your Relationship Director or usual Fidelity contact to find out how we can support you in boosting the financial wellness of your employees with targeted strategies, communications and tools for your workforce.