Cost-of-living pressures force Brits to cut back on saving

Rising costs are forcing many Brits to prioritise short-term expenses over saving for the future.

According to PensionBee, nearly six in ten (59%) people are cutting back on non-essentials like subscriptions and going out because they’re worried about expenses such as bills, food and rent.

But cost-of-living pressures are also leading to many making choices that could have serious consequences further down the line.

For example, almost one in three (30%) said they’re putting less money into their savings.

Meanwhile, more than half (51%) said they’ve either thought about or already reduced or paused their pension contributions in the past year.

Brits feeling pessimistic about retirement income

Unsurprisingly, this is having a knock-on effect on people’s confidence for the future.

Almost a quarter (24%) of people say that if they had to pause contributions, they wouldn’t be able to get their retirement planning back on course.

Meanwhile, more than half don’t feel confident about their chances of affording a comfortable retirement.

“When bills are rising, it’s understandable that long-term saving can feel like a luxury, so it’s encouraging to see that savers’ first instinct is to cut back on non-essentials,” said Lisa Picardo, chief business officer at PensionBee.

However, she said that too many people are having to weigh up “sacrificing their future financial security to cover today’s costs”. 

“Pausing pension contributions should always be a last resort, as missed contributions can add up to a huge difference in your retirement income,” Ms Picardo added.

We’re here for you

If you’re struggling to balance your daily living costs with saving for later life, it could well be worth asking for help.

We can check you’re getting all the benefits you’re entitled to and help you create a realistic budget, so you can prioritise your spending, keep up with essential expenses and plan for the future.

And if you’ve fallen into debt because of cost-of-living pressures, then get in touch for confidential, practical and impartial debt advice.