- 8 in 10 (83%) are concerned the cost of living crisis will mean they will have to work longer before retiring to make up for a shortfall in savings (43% very concerned)
- Almost three in ten (29%) admit they may consider stopping pension payments in the future
As financial pressures on UK employees continue to grow, new research* shows 8 in 10 (83%) employees are concerned that the cost of living crisis will mean they will have to work longer before retiring to make up for a shortfall in savings.
The figures from WEALTH at work also reveal one in three (33%) people think they won’t ever be able to afford to retire at all due to increasing costs. This is despite the success of auto enrolment, which launched over a decade ago.
Whilst more than one in ten (13%) have either stopped or reduced the amount they pay into their pension due to rising costs, worryingly, almost three in ten (29%), admit they may consider stopping payments in the future, and a third (30%) may consider reducing future payments. This will be of particular concern especially when lower fixed rate mortgage deals come to an end and if inflation doesn’t come down as quickly as initially thought.
Further to this, of those eligible to access their pension, one in 10 (10%) have withdrawn savings earlier than previously intended to supplement their income. But, shockingly, 31% either intend to, or may consider it in the future.
When it comes to getting support with their pension, 56% say they speak to unqualified sources such as their partner, family, friends or colleagues (40%), or no one at all (16%). Very few speak to their pension provider (15%), employer (13%), a regulated financial adviser (8%) or specialist bodies such as Pension Wise (4%) or Money Helper (3%).