Key takeaways

• Contributing to a pension is a top financial priority for Europeans, and most feel prepared for retirement.
• Yet investors are concerned that inflation could erode their ability to retire comfortably. Economic uncertainty and unexpected expenses also increase retirement preparedness risk.
• Longevity is presenting new challenges and opportunities, with those who not only plan ahead in saving for their pension but also in the decumulation stage more likely to enjoy a secure retirement. 

Retirement is top of mind for European retail investors, and many are taking the right steps. However, systemic constraints mean they still lack adequate preparation for a longer retirement, according to the results of Fidelity International’s 2025 European Investor Sentiment Survey.

More than any other financial goal, respondents list contributions to their pensions as a priority, according to the survey of 5,500 respondents across France, Germany, Italy, Netherlands, Spain, and Switzerland. With 39 per cent citing this imperative, it outranked ‘maintaining current lifestyle’ or ‘building an emergency fund’ in the top three financial goals. 

Indeed, three in five who have not retired feel they are on track to achieve their desired pension income. That number rises to 66 per cent in Spain, 64 per cent in Germany, and 63 per cent in Switzerland. Italy, on the other hand, lags at 50 per cent (see Figure 1). Unsurprisingly, higher-income earners tend to express more confidence than lower-income earners. Men are generally more confident about their retirement future than women, with 64 per cent versus 52 per cent saying they are on track, respectively.

What it means to be ‘on track’ tends to vary, for example, by geography, lifestyle and financial priorities. Our survey indicates that those in Switzerland estimate they will need a mean income of about €93,000 annually (see Figure 2) to live comfortably in retirement, while those in Spain require about half as much. Across the six nations surveyed, the estimated mean income to live comfortably in retirement is about €52,000 annually. 

Inflation: A top barrier to reaching retirement goals

Investor optimism in the ability to retire comfortably assumes stable inflation, consistent income, predictable expenditures, and the absence of personal, market, and policy shocks. None of these assumptions may hold. Moreover, the risk of not having enough income in retirement has risen as life expectancy increases. 

Across Europe, this shift in demographics marked by longer lifespans is changing how pensions are structured, how government programmes are funded, and how individuals plan for their future. First, corporate defined benefit plans have given way to defined contribution models that place more of the pension income risks onto employees. Second, market uncertainty, asset volatility, and inflation further raise the bar on retirement adequacy. Third, governments are increasingly squeezed by the rising costs of longer life expectancies, such as healthcare. Under pressure, they are pushing more of that cost to individuals, including increasing the official retirement age.

Such dynamics create a misalignment in the retirement picture and are reflected in our survey. Although people feel confident, they worry deeply. For example, inflation is cited by 42 per cent of the pre-retirement respondents as a main barrier to achieving their retirement goals (see Figure 3). While inflation transcends borders, the degree that respondents worry about it varies. In Spain and Germany, for example, inflation is listed by 47 per cent and 46 per cent of the respondents, respectively, as a main barrier. Meanwhile, only 37 per cent and 38 per cent of the respondents in France and Italy, respectively, share the same sentiment (see Figure 4). The variations may reflect idiosyncratic factors such as national differences in pension systems, labour force structures, and attitudes towards state and individual responsibilities.

The market dimensions of anxiety

Economic uncertainty trails inflation as a main barrier to achieving retirement goals, with 35 per cent citing it as a key concern. This, too, is uneven across nations. Respondents in Spain are most negative, with 39 per cent citing economic uncertainty as a main barrier to reaching retirement goals, followed by those in Germany and the Netherlands with 37 per cent each. 

Capital market drivers have become harder to predict, influenced by fragmentation in geopolitical alliances, supply chains, trade networks, and labour markets. This introduces higher risk that market downturns may coincide with withdrawal phases, compounding losses. Therefore, older respondents are potentially more negatively impacted. Among respondents aged 35 to 54 and those aged 55 and over, 36 per cent view economic uncertainty as an obstacle to achieving retirement goals. Among younger respondents aged 18 to 34, this is less of a concern at 33 per cent.

Health as a financial variable

Rounding out the top three obstacles to adequate retirement is unexpected expenses, with 31 per cent of the respondents listing it as a main barrier. Family obligations, medical emergencies, and sudden home repairs are difficult to predict but common in practice. 

Health concerns dominate retirement fears, cited by 42 per cent of respondents (see Figure 5). Among those aged 55 and above, that figure rises to 45 per cent, according to the survey, which was conducted by Opinium between 22 May and 9 June 2025. The sample consisted of 1,000 retail investors each in France, Germany, Italy, Netherlands and Spain, and 500 retail investors in Switzerland.

At 44 per cent, women are more concerned about health problems than men, at 41per cent (see Figure 6). This is perhaps reflected in women having longer lifespans, and therefore greater likelihood of requiring more long-term care. Meanwhile, public health systems are under increasing pressure, resulting in coverage gaps that place higher costs onto individuals.

Other shades of grey

Retirement anxiety is not evenly distributed. For example, women consistently fret more about their future in retirement - including depleting savings too soon and being a burden to family members in addition to unexpected events (see Figure 6). This reveals the challenges that women face to a greater extent than men. They typically have lower lifetime earnings, more frequent career breaks to care for family members, and longer life expectancy.

Similarly, mid-career workers - those aged 35 to 54 - appear more concerned than both their younger and older peers. Some 24 per cent fear depleting their savings too soon, more than any other age groups. Perhaps more than the others, this group currently have more financial responsibilities, sandwiched between supporting their children and their ageing parents. This is also a cohort marked by a more drastic shift from DB to DC in corporate pension systems. Meanwhile, the level of government financial support for retirees is becoming more uncertain. 

In contrast, 24per cent of respondents aged 55 and above say they have ‘no concerns’ about retirement. Dutch retirees are among the most sanguine, with 31 per cent reporting they have ‘no concerns’ about retirement. Their pension system is often cited as one of the world’s best[1] for providing adequacy of income, sustainability, and transparency, with a three-pillar model split between state benefits, occupational pensions, and private savings. However, even in the Netherlands, pension reforms are underway to address its ageing population, shifting more of the liability risk to individuals through collective defined contribution (DC) pension schemes from defined benefit (DB) schemes.

A fragile confidence

Europe is greying at a faster pace than the prevailing retirement structure can support. The percentage of the population aged 65 and over in the European Union reached a record high of 21.6 per cent in 2024, increasing in every EU country.[2] Furthermore, the oldest population within that group is likely to increase at a faster rate in the coming years. According to Eurostat, the proportion of those aged 80 years or above is expected to more than double to 15.3 per cent by 2100 from 6.1 per cent in 2024.[3] 

As people live longer, they will be spending more time in retirement. While our survey reveals a high degree of confidence among European investors to achieve their retirement goals, there is a disconnect. Confidence is not the same thing as actual preparedness. Governments, employers, and individuals must recalibrate how they prepare for longer retirements. 

Retirement itself is becoming more of a phase than an endpoint as an ageing population presents new challenges - and opportunities. Individuals not only need to save enough for retirement, but they also need to manage the decumulation phase to meet their retirement goals. This may require more robust financially planning, longer working lives, and a focus not just on life expectancy but a healthy life expectancy. Those who prepare early, save adequately, and diversify sensibly will have a head start to their future in retirement.

[1] ‘Mercer CFA Institute Global Pension Index 2024’, Mercer, CFA, Monash University, October 15, 2024.

[2] ‘Population structure and ageing’, Eurostat, February 2025.

[3] Ibid, Eurostat, February 2025.