Only 4 per cent of households have reduced pension contributions despite the cost-of-living crisis, according to new research from Pensions UK.
But according to survey data, 44 per cent of households say their financial situation is worse than 12 months ago and many have cut back on discretionary spending.
It also revealed that around 65 per cent of respondents agree that people should be encouraged to make higher contributions. Additionally, 87 per cent expect the Government to ensure pensions deliver value for money, 61 per cent want all pensions automatically combined and 77 per cent want to see all their pensions in one place. In addition, 79 per cent want the ability to choose how their pension is invested.
Additionally, confidence in the state pension remains low, with 62 per cent saying the full pension of around £12,000 per year is insufficient, while 89 per cent support maintaining its value with cost-of-living increases.
Respondents ranked keeping the state pension rising with inflation and ensuring it is sufficient to live on as the top Government priorities, with more than half supporting each.
Pensions UK executive director of policy and advocacy Zoe Alexander says: “Households are under pressure, but what really stands out is that people are continuing to save through automatic enrolment, and indeed 65% of people believe contributions should go up. This demonstrates both the value people place on retirement security and the power of automatic enrolment. It puts the onus on politicians and industry, and the current Pensions Commission, to make sure the system works well for as many savers as possible. Pensions UK will be supporting the Commission through its own research on automatic enrolment system design.
“Encouragingly, many of the reforms in the Pension Schemes Bill, such as action on small pots, guided retirement products and a new value for money regime, reflect what the public want and what Pensions UK has long called for.
“Our research shows that people want Government to focus on protecting the value of pensions and helping them grow steadily over time. Decisions about how pensions invest should always be based on what is best for savers, not short-term policy aims, otherwise people could face unnecessary risks. The best way to deliver strong outcomes is for schemes to make investment decisions in the long-term interests of members.”
