• Only one in eight (12%) affluent individuals have made detailed plans for care costs

• Rathbones' inaugural Retire Well Index reveals a gap between confidence and preparedness

• Findings come from The New Retirement Reality [https://tinyurl.com/4jd9s553], a new report which explores how affluent households are navigating the shift from building wealth to spending it

As the debate over how Britain will fund an ageing population intensifies, many affluent households are worried about later-life care but failing to plan for it, according to Rathbones, one of the UK's leading wealth and asset management groups.

The findings are set out in Rathbones’ new report, The New Retirement Reality, launched today, and come as the government announces plans to overhaul the State Pension triple lock from 2030 to help fund a major expansion of social care provision.

Research among 2,036 UK adults with at least £250,000 in investable assets found that 40% rank the cost of care among their three biggest retirement concerns. Yet only 12% have made detailed plans to cover those costs, while 45% admit they have not meaningfully factored care into their retirement planning at all.

This lack of preparation is reflected in the inaugural Rathbones Retire Well Index, a new behavioural benchmark that measures how actively affluent households are preparing for retirement and later life. Rather than tracking confidence or intentions, it measures real-world actions, from pension engagement and retirement planning to estate planning, care-cost preparation and responses to pension inheritance tax changes.

The Index is scored on a scale of 0 to 100, where 0 represents very low levels of planning and engagement and 100 represents the highest levels of reported preparedness.

Across the affluent households surveyed, the average score was just 44 out of 100, placing the typical respondent in the Index's moderate preparedness band. Even respondents who described themselves as "extremely prepared" scored only 50 out of 100 on average, highlighting a significant gap between confidence and action.

Stephen Field, Director of Advice, Supervision and Oversight at Rathbones, says: “Care costs are the elephant in the room of retirement planning. Many people tell us they worry about them, but far fewer are taking practical steps to prepare. That preparation gap is reflected in our Rathbones Retire Well Index - even among people who believe they are well prepared.

“With people living longer, but not necessarily healthier lives, more retirees are likely to face periods of ill health or care needs. Without a plan, money intended for travel, lifestyle goals and family could ultimately be used to fund care instead.”

Wealth doesn't eliminate retirement uncertainty

These findings form part of The New Retirement Reality, which explores whether affluent households are truly prepared for later life, examining everything from retirement income and longevity to inheritance planning and financial resilience.

At the heart of the report is what Rathbones calls The Great Decumulation Challenge: turning money saved over a working lifetime into enough to live on, taking into account longer lives, rising costs of care and unexpected life events.

Even among wealthier individuals, retirement anxiety remains widespread. While 78% say they have a clear retirement funding plan, 75% understand their pension entitlements and 74% believe they are on track for the retirement they want, almost half (45%) still worry they have not saved enough.

The findings suggest that wealth alone does not eliminate uncertainty. Instead, many households are grappling with questions around longevity, care costs, tax changes, income sustainability and how to balance enjoying their wealth with supporting future generations.

Stephen Field says: "For many clients we speak to, their questions are: How long will my money last? How should I draw income from different assets? What happens if I need care? How do I support loved ones without compromising my own financial security? Even if they have enough money to retire, many people aren’t sure how long it will last”

“Having wealth and having confidence are not necessarily the same thing."

Other findings from The New Retirement Reality include:

• Working in retirement: 42% of those yet to retire expect to phase gradually into retirement, while a further 16% expect to reduce their hours but continue some form of paid work.

• Pensions and inheritance tax: 24% are unaware of the planned pension inheritance tax changes due in April 2027**, while 35% of those aware have yet to take any action.

• Inflation remains the biggest retirement concern, cited by 46% of affluent individuals, ahead of tax changes affecting retirement income (43%) and later-life care (40%).

• 57% prioritise using their wealth to fund retirement, compared with 18% who prioritise leaving an inheritance.

ENDS

Notes to editors

About the research

The New Retirement Reality is based on original quantitative research commissioned by Rathbones and conducted by Savanta.

• 2,036 UK adults with at least £250,000 in investable assets were surveyed.

• The sample included affluent individuals at different life stages, including mid-career, pre-retirement and retired households.

• Respondents held a minimum of £250,000 in investable assets.

About the Rathbones Retire Well Index

The Rathbones Retire Well Index is a behavioural engagement and planning index designed to assess how actively affluent individuals are preparing for retirement and later life.

The Index combines seven equally weighted measures:

• Frequency of financial reviews

• Recency of financial reviews

• Pension engagement

• Retirement planning

• Legal readiness

• Planning for later-life costs

• Consideration of pension inheritance tax changes

Scores range from 0 to 100, where 0 represents the lowest levels of reported planning activity and 100 represents the highest.

The average score across the survey was 44 out of 100. Around 20% of respondents fell within the high preparedness band, while approximately 40% scored below 40.

Around two in five respondents score below 40, while only one in five achieve a high preparedness score of 60 or above.

The Index measures reported planning behaviours and engagement, not financial adequacy or retirement wealth.

**From 6 April 2027, most unused pension funds and pension death benefits will be brought within the value of a deceased person’s estate for Inheritance Tax purposes.

Myron Jobson

Personal Finance, Senior Manager

Myron.jobson@rathbones.com

07508014552

Press team

press@rathbones.com

About Rathbones rathbones.com

Rathbones Group Plc (Rathbones) is one of the UK’s leading providers of investment and wealth management services for private clients (individuals and families), charities, trustees, and professional partners. Rathbones’ purpose is to help more people invest their money well, so they can live well.

With roots dating back to 1742, the company has been trusted for generations to manage, preserve and grow its clients’ wealth. Services include discretionary investment management, fund management, tax planning, trust and company management, financial advice and banking services. Rathbones also supports financial advisers in its aim to deliver positive outcomes for their clients.

Rathbones manages £120.7 billion* of client assets, including £16.3 billion through its asset management arm, Rathbones Asset Management Limited. A FTSE 250 company, Rathbones has over 3,300 employees, including over 700 investment professionals in 21 offices across the UK and the Channel Islands, offering clients high-quality, personalised wealth management services.

*As of 30 June 2026

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