Retirement confidence in the UK has fallen to its lowest level since records began, according to findings from Nucleus Financial Platforms. Its latest UK Retirement Confidence Index places national confidence at 4.2 out of 10, down from 4.6 last year and significantly below the inaugural 6.9 recorded in 2023. Is now the time to reassess your pension?
This decline comes at a time when the Government is preparing a series of reforms aimed at modernising the pensions landscape. According to coverage from Pensions Age, savers are increasingly uneasy about potential changes to tax relief, pension allowances and the treatment of inherited pensions.
Fresh analysis from Fidelity International suggests the Treasury may be assessing the long‑term sustainability of several pension incentives — with the popular 25% tax‑free lump sum unlikely to disappear, but other allowances still under review.
Meanwhile, the Government has formally revived the Pensions Commission, a significant structural move confirmed in a joint announcement by the Department for Work & Pensions and HM Treasury. The Commission will examine systemic issues and advise on reforms needed to ensure long‑term retirement security. The official statement is available here:
Government revives Pensions Commission
In the private sector, wealth managers are urging clients not to make rash investment decisions in the run‑up to the Budget. Reporting from City A.M. highlights that advisers are warning against “knee‑jerk reactions” to speculation around pension tax changes, recommending instead that investors revisit their long‑term strategy:
City A.M. – Wealth managers warn against knee‑jerk reactions
For higher‑earning professionals, business owners and individuals with sizeable pension and investment portfolios, these developments present a timely moment to reassess retirement planning. Adjustments to allowances, investment allocations or tax planning strategies may be beneficial, especially given the heightened uncertainty.
Consumer sentiment is also shifting. The latest wellbeing data reported by Which? shows declining confidence among savers about making long‑term financial decisions without guidance, reinforcing the potential value of a structured pension or wealth review.
The direction of policy is clear: a modernisation of the pensions system is coming. The exact nature of the reforms remains unconfirmed, but the combination of falling confidence and shifting regulation points to a renewed need for forward‑looking planning.
Those with complex arrangements or larger portfolios may find value in professional guidance — not just to understand current rules, but to prepare for a system that is likely to evolve.
And as The Finance Review has said previously – it’s important to have regular pension reviews.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research and consult with a regulated financial advisor before making important financial decisions.
Editorial Note: The Finance Review recommends staying updated on forthcoming Budget announcements and regulatory changes. Savers with multifaceted or sizeable pension arrangements may benefit from a holistic review with a qualified financial planner or wealth manager.
References
- Pensions Age. Retirement confidence falls to record low ahead of Autumn Budget. ( Article , accessed on 24 November 2025) ↩︎
- Fidelity International. How might the Government change pensions? ( Editorial Analysis , accessed on 24 November 2025) ↩︎
- UK Government. Government revives landmark Pensions Commission… ( Official Announcement , accessed on 24 November 2025) ↩︎
- City A.M. Wealth managers warn against knee‑jerk reactions to Budget speculation. ( News Report , accessed on 24 November 2025) ↩︎
- Which? Money. Financial wellbeing and consumer confidence report. ( Homepage ) ↩︎
- Nucleus Financial Platforms. UK Retirement Confidence Index – 2025. ( Homepage ) ↩︎
