New research1 from People’s Partnership2 suggests that the cost-of-living crisis isn’t negatively impacting the UK’s retirement saving habits, with just two per cent of pension savers admitting they have stopped paying into a pension in the last six months.
This is compared to almost four in 10 pension holders (39%) choosing to eat out less, one in five (21%) cutting back on holiday spending, more than four in 10 (44%) buying cheaper brands or ‘own label’ products, and a third (33%) reviewing their direct debits or standing orders.
Despite the current economic climate, the workplace pension provider, which provides The People’s Pension to more than 6 million people across the UK, also found that only 4 per cent of pension holders would consider pausing their retirement saving in the next 12 months, while 4 per cent said they would also think about reducing the amount they pay into their pension in the next year.
Whereas half of those questioned (50%) would buy cheaper brands or own label products, almost half (46%) would go out less often, just under two-fifths (39%) would review their direct debits or standing orders, and more than a third (35%) said they would cut back on holiday spend. Interestingly, seven per cent of respondents claimed they would look to increase their pension contributions in the next 12 months.
Commenting, Phil Brown, director of policy for People’s Partnership, said:
“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.”
Notes to editors:
- All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,055 adults, of whom 1,370 had a pension and/or investment for retirement. Fieldwork was undertaken between 11th – 14th November 2022. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
- People’s Partnership is a profit-for-people organisation, which changed its name from B&CE in November 2022. It provides The People’s Pension, a leading workplace pension scheme, serving more than six million pension savers across the UK. As a business without shareholders, it reinvests its profits with the aim to help customers and achieve better financial outcomes for everyone.