One in 25 (4%) pension savers would think about pausing their retirement saving within the subsequent 12 months as residing prices chew, a survey has discovered.
he identical proportion (4%) mentioned they might take into consideration lowering the quantity they pay into their pension within the subsequent yr.
Two per cent of pension savers mentioned that they had stopped paying right into a pension prior to now six months, based on the analysis from Folks’s Partnership, which offers office pension scheme the Folks’s Pension.
Seven per cent of savers mentioned they might look to extend their pension contributions within the subsequent 12 months.
The analysis discovered pension savers have been considerably extra more likely to be reducing their on a regular basis residing prices.
Practically 4 in 10 pension holders (39%) are selecting to eat out much less, one in 5 (21%) are reducing again on vacation spending, and a 3rd (33%) are reviewing their direct debits or standing orders.
Folks paying right into a office pension additionally obtain the advantages of employer contributions and tax aid on their financial savings.
However as residing prices surge, some folks could also be weighing this up towards the price of going into debt.
Phil Brown, director of coverage for Folks’s Partnership, mentioned: “For some, reviewing what they’re paying into their pension would be the proper factor.
“Nonetheless, with 60% of individuals throughout the UK not saving sufficient to keep up their present way of life in retirement, it’s actually reassuring that regardless of the present financial local weather, pensions stay a precedence for people who find themselves different methods to chop again earlier than touching their pension pot.
“It’s clear that the report ranges of retirement saving, which is in no small half because of the introduction of automated enrolment 10 years in the past, signifies that pensions are as essential as they ever have been to UK employees.”
Greater than 2,000 folks have been surveyed, amongst whom 1,370 had a pension and/or an funding for retirement.
