Scottish Widows' latest Retirement Report, based on a survey of 5,120 UK adults, found that 61% of those with vulnerable characteristics feel overwhelmed when thinking about retirement savings. The findings put a number on a problem HR and benefits teams are increasingly asked to address: how workplace pensions support people through ill health, divorce, bereavement and other life shocks that fall squarely inside the employer-employee relationship.

The insurer defines "vulnerable" adults as those experiencing ill health, divorce or bereavement, lower financial resilience, or low confidence managing money. Within that group, 54% said putting money aside for retirement increases their financial stress — almost double the 29% rate among adults without those characteristics. The gap signals where workplace pension communications, default fund choices and one-to-one guidance need to land most carefully.

Which groups carry the heaviest burden?

The strain falls unevenly. Two-thirds (66%) of LGBTQ+ adults with a vulnerability said retirement planning makes them feel overwhelmed, and 65% of single mothers reported the same reaction. The pattern matters for employers: workforce demographic data should drive how benefits teams design targeted outreach, rather than relying on generic pension materials.

What are people actually doing about it?

Behavioural data shows inaction is widespread:

• 63% have done little to no research into retirement.
• 28% have made no arrangements at all.
• Another 28% have never started saving into a pension.
• 13% have stopped or reduced retirement savings in the past 12 months.

For HR, the operational question is whether the workplace pension scheme carries enough of the burden for employees who are not self-directed savers — through default investment pathways, contribution matching and proactive member communications tied to life events.

How deep does the anxiety run?

Two-thirds (66%) of all respondents worry they will run out of money in retirement. Among those who hold that fear, 38% are from an ethnic minority. Meanwhile, 60% do not feel confident managing their retirement savings, and 31% do not believe they will ever be able to afford to stop working at retirement age. That share rises to 53% among people with a health concern.

What does the report say about employer responsibility?

Three-fifths (62%) of respondents expect to face a major life event or financial challenge that could seriously affect their retirement savings. Jill Henderson, retirement expert at Scottish Widows, framed the challenge in human terms.

"Financial vulnerability is something many people face at different points in their life for a variety of reasons," she said. "It could be because of ill health or going through a major life event such as divorce, bereavement or a change in working status, as well as 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."

Her conclusion pointed toward employer action. "This can have a permanent impact on people's long-term financial plans," Henderson said. "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."

What should HR teams do next?

The data sharpens three operational questions for HR leaders. First, whether the scheme's default fund and contribution structure can keep members on track when their circumstances change suddenly. Second, whether financial wellbeing benefits — from hardship funds to access to regulated advice — reach the segments reporting the highest stress, including LGBTQ+ employees, single parents and people with health conditions. Third, whether life-event triggers in HR systems route employees toward pension information, income protection options and support services at the moment they need it.

Scottish Widows' survey, with its 5,120-person sample, is among the larger UK datasets on retirement vulnerability released this year. The next test for employers will be whether auto-enrollment's decade-plus track record is matched by equally robust support for members whose savings journey is interrupted by the events almost two-thirds of UK adults now expect to face.