The vulnerability gap: 34 million Brits face uncertain retirement

• Three in five UK adults (62%) face circumstances that could put their retirement plans at risk
• Almost a third (31%) of vulnerable adults don’t think they’ll be able to afford to stop working at retirement age
• 61% of vulnerable people feel overwhelmed thinking about retirement savings

1 October 2026 - Three in five Brits (62%), equating to more than 34 million adults* across the UK, will face a major life event or financial challenge which could seriously affect their retirement savings, according to Scottish Widows' latest Retirement Report, focusing on the impacts of vulnerability.

These experiences range from ill health, divorce and bereavement, to lower financial resilience and confidence managing money, and often result in a reduced focus on retirement saving. 

More than half (54%) of people with vulnerable characteristics say putting money aside for retirement increases their financial stress today, compared with 29% of non-vulnerable adults.

Meanwhile, nearly twice as many vulnerable people facing life or financial challenges are overwhelmed when thinking about retirement savings (61% vs. 33% non-vulnerable). 

Challenges surrounding vulnerability can also be compounded by wider hurdles that people face for being part of minority groups. Two in three LGBTQ+ adults with a vulnerability (66%) say thinking about retirement savings makes them feel overwhelmed, and a similar number (65%) of single mothers in similar circumstances reported the same. 

Low confidence translates to lower levels of planning

This anxiety creates a barrier to planning ahead. Almost two in three (63%**) have done little to no research into retirement, and over a quarter (28%) haven’t made any arrangements. A further 28% haven’t started saving into a pension yet, while 13% have stopped or reduced their retirement savings in the past 12 months. 

As a result of this, 60%** of adults don’t feel confident managing their retirement savings. Two-thirds (66%) worry that they will run out of money in retirement, and 38% within this group are part of an ethnic minority.

Working for longer isn’t an option for everyone

While working for longer is a common fallback to make up for a retirement savings gap, this isn’t always an option. Almost a third (31%) of vulnerable adults don’t think they’ll ever be able to afford to stop working at retirement age, with this rising to 53% of those with a health concern.

Jill Henderson, Retirement Expert at Scottish Widows, said: “Financial vulnerability is something many people face at different points in their life for a variety of reasons. It could be because of ill health or going through a major life event like divorce, bereavement or a change in working status, as well as things like debt, having little to no savings or low financial confidence. Whatever form it takes, the reality is that most of us will be affected by financial vulnerability at some point in our lives, even for a short period.

This can have a permanent impact on people’s long-term financial plans, as the demands of living today may affect saving for tomorrow. When income drops - for example because someone may be unable to work for health reasons - savings can start to dwindle, debt can build, and longer-term financial plans may take a backseat. 

It’s true that there’s no easy fix to this – but helping people build resilience while things are going well, and supporting them properly when circumstances change – is an important place to start.” 

There are financial planning tools available online and in Scottish Widows’ app, including a Retirement Calculator, which can help people work out what retirement income they are on track for and better understand the long-term financial impact of taking a career break and other decisions made during their working lives. It can also give ideas on ways to boost pension savings and understand how other activities such as investing can help them build wealth alongside it.

Scottish Widows’ Be Money Well Hub*** was designed to help people take control of their finances and find peace of mind by hosting a range of written lessons, videos, and interactive tools to help people learn at their own pace. Work through a category lesson-by-lesson, or pick and choose the ones that are most useful for you in bite sized lessons.

Notes 

*https://statbase.org/data/gbr-population-age-18-and-above 62% of 55,198,761 is 34,223,231.82 (rounded up to 34 million)

**This refers to vulnerable adults

***Scottish Widows’ Be Money Well hub has resources and information to help members with a financial vulnerability, including our partnerships with Macmillan and Citizens Advice. 

Methodology 

The research was conducted online by YouGov across a total 5,120 adults aged 18+, weighted to be representative of the UK population. Fieldwork was carried out between 16 February 2026 and 24 February 2026. 

About Scottish Widows  

Founded in 1815, Scottish Widows is part of Lloyds Banking Group, the UK’s largest digital bank and financial services group. With £303bn in total assets under administration and more than 6.5 million customers, Scottish Widows’ award-winning product range includes workplace and individual pensions, annuities, life cover, critical illness and income protection, as well as savings and investment products.

Scottish Widows has more than 1.75m digitally registered customers. The Scottish Widows Platform is trusted by financial advisers as the home for the pension and investment assets of more than 170k clients.