• 7% of pension savers have stopped paying contributions in the past 12 months
• 75% of working people are ‘concerned’ that the Cost of Living Crisis will mean that they will experience a less comfortable retirement

The Cost of Living Crisis has not yet had a significant impact on the public’s savings for retirement. Whilst pressures on household incomes have grown, savers continue to pay contributions to registered pension schemes. However, there is strong evidence that this may change. Recent research conducted on behalf of the Pensions Management Institute (PMI) has shown that of those saving into a pension scheme over the past twelve months, 13% have reduced their contributions and a further 20% are considering doing so over the coming months. 7% of those polled have already ceased their contributions.

Commenting on the findings, PMI President Sara Cook said: “The pressures of meeting short-term needs for cash have forced many people to make decisions which could have serious implications for their longer-term financial security. Our research shows that a significant proportion of the General Public is saving at rates that are lower than they were twelve months ago. They are aware of the impact this will have but feel that they have no alternative. Our research serves as an early warning that the public is finding it harder to take a longer-term view of retirement saving when short-term pressures have become so great.”

A need to make savings has not been confined to contributions. Of those old enough to do so, 17% have withdrawn money from their pension savings to meet short-term needs.

Over 75% of workers were concerned that the Cost of Living Crisis would have a detrimental impact on their plans for retirement. 70% believed that they would have to defer retirement. Workers typically expect they will need to work for an extra three years to due to the crisis. 28% believed that they would never be able to retire at all.

Sara Cook added: “It is tragic that all the good achieved by automatic enrolment over the last decade might be undone by desperate people being forced to make short-term decisions at the expense of their longer-term security. Concern about the consequences for retirement of the current crisis was shared equally across all age groups, all income levels and all regions. The nation as a whole has lost confidence in its prospects for a comfortable retirement, and that is something that should alarm us all.”