Nearly half (47 per cent) of Europeans fear that they won’t be able to maintain a comfortable lifestyle in retirement, research from Kearney has revealed, highlighting a “critical gap” in later life financial planning.
 
The research found that retirement confidence was particularly low in the UK (62 per cent), the Netherlands (57 per cent) and Spain (54 per cent).  

In addition to this, nearly a third (32 per cent) of respondents across Europe were unable to predict what their income or lifestyle will look like after they retire.
 
The research suggested that, for many Europeans, retirement no longer means slowing down, with almost two-thirds (63 per cent) of those aged 60 to 75 worried they won’t be able to maintain their current living standards, with most needing at least 67 per cent of their current income to feel financially secure.

This is impacting saver behaviour, as 41 per cent of Europeans now expect to keep working past retirement age.

The pressure was even more intense in Poland, the Czech Republic and Romania where the gap between average wages and pensions is typically wider than the pension replacement rate in Western Europe, at 65 per cent, 51 per cent, and 48 per cent, respectively.
 
Despite this, Kearney found that many Europeans are facing retirement without financial help, as 41 per cent percent of investors do not receive professional advice.

However, whilst 18 per cent of this group had no desire for guidance, nearly a quarter (23 per cent) said that they want guidance but cannot access it.

This was particularly true for savers in some countries, as the proportion of those struggling to obtain financial advice in Portgual rose to 38 per cent, while 34 per cent struggled in the Netherlands and 27 per cent had issues in Sweden.
 
Self-directed investments are gaining interest, however, particularly in markets like Austria (38 per cent) and Germany (29 per cent), where robo-advisers and online brokers are becoming more popular.

Digital platforms also continued to dominate more broadly across Europe, as Kearney found that 64 per cent of investors purchased financial products online or via mobile apps, signalling that convenience and control are driving consumer behaviour.

However, this appetite for digital channels isn’t universal, as Kearney found that older investors still favour face-to-face advice, especially for key retirement decisions, demonstrating a growing generational divide in how financial advice is accessed and trusted.  
 
Commenting on the findings, Kearney partner and Europe lead financial services, Roberto Freddi, said: "We are witnessing a confidence crisis in retirement planning across Europe.

"Many millennials and Gen Zs have grown up in times of financial instability, and the conventional paths to financial security, like homeownership or stable pensions, unfortunately now feel out of reach. 
 
“This uncertainty isn’t just about pensions and reflects deeper disengagement with long-term financial planning. Retail banks now have an opportunity to play a more active role in bridging this gap by simplifying investment products and offering more proactive, personalised support that helps consumers feel in control of their financial futures, not overwhelmed by them.” 
 
Kearney partner, Daniela Chikova, added: “We’re at a turning point where retail banks can no longer afford to be passive product providers and need to support their customers through different financial phases of their lives, especially retirement.  
 
“With consumers increasingly looking beyond traditional financial institutions for guidance, turning to digital-first platforms or social media for advice, banks must first meet people where they are.

"By embedding financial planning into everyday banking experiences, using data to deliver tailored insights, and demystifying long-term saving and investing, they can help people feel confident and supported - not just at the point of retirement, but every step along the way.” 
 

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