Only 2 per cent of pension savers in the UK report having ceased making pension contributions in the last six months, indicating that the cost-of-living problem isn’t having a detrimental influence on retirement saving practises, according to new research from People’s Partnership.
Comparatively, 39 per cent of pensioners choose to dine out less, 21 per cent cut back on vacation spending, 44 per cent buy less expensive brands or “own label” products, and 33 per cent evaluate their direct debits or standing orders.
The research also found that only 4 per cent of pension holders would consider pausing their retirement savings in the coming year. Another 4 per cent said they would also consider reducing the amount they contribute to their pension.
Almost half of those polled, or 46 per cent, said they would go out less frequently, just under two-fifths, or 39 per cent, said they would evaluate their direct debits or standing orders, and more than a third, or 35 per cent, said they would reduce their Christmas spending. Also, 7 per cent of respondents said they planned to increase their pension contributions in the upcoming year.
Phil Brown director of policy People’s Partnership says: “We cannot underestimate the financial pressures facing people across the UK at the moment, with inflation at a 40-year high. For some, reviewing what they’re paying into their pension will be the right thing. However, with 60 per cent of people across the UK not saving enough to maintain their current standard of living in retirement, it’s really reassuring that despite the current economic climate, pensions remain a priority for people who are looking at other ways to cut back before touching their pension pot.
“It is clear that the record levels of retirement saving, which is in no small part due to the introduction of automatic enrolment 10 years ago, means that pensions are as important as they ever have been to UK workers.”