4% of pension holders consider pausing retirement saving as costs surge – survey

One in 25 (4%) pension savers would consider pausing their retirement saving in the next 12 months as living costs bite, a survey has found.

The same proportion (4%) said they would think about reducing the amount they pay into their pension in the next year.

Two per cent of pension savers said they had stopped paying into a pension in the past six months, according to the research from People’s Partnership, which provides workplace pension scheme the People’s Pension.

Seven per cent of savers said they would look to increase their pension contributions in the next 12 months.

The research found pension savers were significantly more likely to be cutting their everyday living costs.

Nearly four in 10 pension holders (39%) are choosing to eat out less, one in five (21%) are cutting back on holiday spending, and a third (33%) are reviewing their direct debits or standing orders.

People paying into a workplace pension also receive the benefits of employer contributions and tax relief on their savings.

But as living costs surge, some people may be weighing this up against the cost of going into debt.

Phil Brown, director of policy for People’s Partnership, said: “For some, reviewing what they’re paying into their pension will be the right thing.

“However, with 60% 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.”

More than 2,000 people were surveyed, among whom 1,370 had a pension and/or an investment for retirement.