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Q1 2025: Retirement Confidence Index
As we move further into 2025, retirement confidence continues to climb, even in the face of economic uncertainty and Social Security concerns. PensionBee’s Q1 Retirement Confidence Index reveals a growing sense of optimism among working-age Americans and retirees alike, marking a shift from the anxiety of late 2024.
Confidence on the Rise
For the first time since we began tracking retirement sentiment nine months ago, optimism now outweighs concern. A little over half (51.8%) of working-age Americans (under 59s) feel positively about their retirement, a 5.8% jump from the previous quarter. This growing confidence signals a shift in mindset despite persistent worries about savings and government support.
Among retirees (over 59s), confidence remains strong, with 58.3% feeling positive about their financial future. While their optimism dipped slightly by 1% this quarter, the majority still feel secure in their retirement outlook.
Government Policy Weighs Heavily on Retirement Confidence
One key factor influencing retirement confidence is government policy. Over two-thirds of respondents from both age groups (77.8% of under 59s and 76% of over 59s) say government decisions impact their retirement planning.
The number of under 59s who feel that government policies significantly impact their retirement confidence has climbed steadily, rising from 31% before the election to 40% today. Meanwhile, fewer now believe policy has no impact at all, with responses declining from 13% to 8%. These numbers show that, as the new administration settles in, people are paying closer attention to how political decisions will shape their financial future.
The Gender Gap: Men’s Confidence vs. Women’s Reality
Confidence levels differ sharply between men and women, with men feeling significantly more secure about their retirement than women.
- Among under 59s, 63.7% of men feel positive about retirement, compared to just 41.5% of women.
- Under 59 men are twice as likely to feel “very positive” (28.8% vs. 14.5%).
- The trend continues in the over 59s, where 65.3% of men feel confident versus 52.3% of women.
- Between this survey and last, men’s confidence jumped from 55% to 64.5% while women’s increased modestly from 46% to 47%.
These figures suggest that men’s optimism may be driving the overall confidence increase, but the reality for many women is far less secure.
The Retirement Preparedness Divide
Despite needing to plan for longer retirements, women are more likely to be financially unprepared.
- In the under 59 group, women are nearly three times as likely as men to report having no retirement savings at all (15.1% vs. 5.4%).
- 12.5% of women admit they have “no idea” about their retirement, compared to 8.7% of men.
- Among over 59s, 19% of women say they lack retirement savings, almost double the 10% of men.
Notably, women in the younger cohort report feeling more prepared for retirement, but that confidence doesn’t always align with financial reality. This raises the question: are women absorbing positive financial messaging without experiencing real financial progress?
PensionBee aims to bridge this gap – not just by fostering financial confidence, but by ensuring that confidence translates into tangible financial security.
