A stark warning has been issued to UK retirees who depend entirely on the Department for Work and Pensions (DWP) State Pension, following a significant drop in saver confidence after the Autumn Budget.
Survey Reveals Crisis in Retirement Confidence
A new survey by digital workplace pension provider Penfold has uncovered deep anxiety among British savers. The study, which involved 340 participants, found that a overwhelming 72% believe the current Labour government is failing to provide adequate support for retirement preparation.
Furthermore, 58.5% of respondents reported feeling less confident about their financial future following the Chancellor's announcements. This points to a climate of heightened uncertainty, with savers expressing specific fears about the rising state pension age, frequent rule changes, and concerns that the state pension may not exist in its current form when they stop working.
Budget Changes Fuel Uncertainty and Hesitancy
The Autumn Budget introduced two key measures that have contributed to this wave of doubt. The first is a proposal to limit National Insurance (NI) relief on salary sacrifice arrangements from 2029. The second is the establishment of a new state pension commission, which many interpret as a sign the system is under review.
This uncertainty is having a direct impact on financial behaviour. Penfold's data shows that over a third of savers (36.3%) are now unsure whether to increase or decrease their monthly pension contributions. The provider has labelled this widespread hesitancy as "disruptive" to effective long-term planning.
Expert Warns Against Sole Reliance on State Pension
Chris Eastwood, CEO and co-founder of Penfold, commented on the concerning findings. "When more than a third of savers can't decide whether to increase or reduce their pension contributions, it's a clear signal that confidence has been disrupted," he stated.
He criticised the planned cap on salary sacrifice NI relief, calling it "a backward step for boosting pension saving." Eastwood also suggested that the creation of a new commission to reconsider the state pension indicates the current system is "under pressure" and likely to change.
"For today's savers, it reinforces a simple truth: relying on the state pension alone won't deliver the retirement most people hope for," he cautioned. He emphasised that sudden policy shifts undermine public trust and make personal planning extremely difficult.
Eastwood concluded with a sobering message: "If contributions drop or planning is delayed, millions of savers could face a retirement far less secure than they expect. This Budget highlights why private pension planning has never been more important."
