More than half of UK adults (51%) are unaware of upcoming pension policy changes that could have a major impact on their retirement plans, according to a new report from Schroders Personal Wealth (SPW).
The 2025 SPW Retirement Report, based on a survey of 1500 UK adults, reveals striking gaps in financial knowledge, particularly around inheritance tax (IHT). Despite 29% of respondents planning to pass on their pensions, a staggering 85% admit they don’t fully understand the IHT rules that could affect them.
These findings highlight a critical disconnect with many people planning for retirement based on outdated assumptions around government policy. These include a rising state pension age, the inclusion of defined contribution pensions in IHT from April 2027 and the potential 2025 Pensions Bill, all of which could dramatically reshape retirement timelines and financial futures.
The lack of awareness around pension changes is just one part of a wider problem: under preparedness for retirement. Nearly half of UK adults (43%) don’t have an up-to-date financial plan and over a quarter (26%) have no retirement plan in place at all.
Worryingly, 22% admitted they have no idea how much their pension is worth. Among those aged 65 and over, that figure jumps to 28% – a critical blind spot for people at or near retirement age, when financial clarity matters most.
Despite the uncertainty, financial advice remains vastly underused. 60% of people have never spoken to a financial adviser about retirement, missing out on guidance that could help them make informed, confident decisions.
The result? Low confidence across the board. Just 10% of respondents feel “extremely confident” about their financial future in retirement, while nearly a third rating their confidence between 0 and 4 out of 10, showing just how deeply a lack of preparation can erode peace of mind.
Key findings:
- More than half (51%) of respondents are unaware of upcoming pension policy changes
- 85% of respondents do not fully understand the inheritance tax rules, despite 29% planning to pass on their pensions
- Nearly half of people don’t have a financial plan in place for retirement, with one quarter having no financial plan at all
- 60% have never spoken to a financial adviser about their retirement, with 28% of those believing they don’t have enough wealth to seek advice
- Only one in ten people feel extremely confident about their retirement
Mark Duckworth, chief executive at Schroders Personal Wealth, said:
“This report is more than a snapshot of public sentiment – it’s a call to action. Retirement should be a time of freedom, fulfilment and peace of mind, yet for many the path is paved with uncertainty. Twice as many people worry about not having enough funds as those who simply lack a plan. The findings are both encouraging and sobering: while many are taking positive steps, too many remain unsure, under-informed or disengaged. More needs to be done to help people build the retirement they deserve.”
Alex Gaita, financial planning director at Schroders Personal Wealth, said:
“Retirement planning doesn’t happen in isolation – it’s shaped as much by shifting laws and government decisions as by personal goals. Yet over half of people are unaware of upcoming changes. With tax rules likely to evolve and fresh uncertainty around the upcoming Budget, too many are planning for the future based on assumptions, not facts – a risky disconnect when policy can dramatically alter both timelines and outcomes.”
Alice Harmer, personal wealth adviser at Schroders Personal Wealth, said:
“Engaging with financial advice can transform your retirement confidence. In fact, our research found that people with an up-to-date retirement plan are 90% more confident than those without. Even small steps – like reviewing your plan or speaking to an adviser – can make a real difference, helping you feel in control of your future, no matter what stage of retirement planning you’re at.”
