Employees are being forced to rethink their retirement plans due to the cost-of-living crisis.
As financial pressures on UK employees continue to grow, new research by WEALTH at work has found that many people are having to rethink their retirement plans. It found that eight in 10 employees (83%) are concerned that the cost-of-living crisis means they will have to work longer before retiring to make up for a shortfall in their savings.
Worryingly, one in three (33%) believe that they won’t ever be able to afford to retire due to the cost-of-living increases. Some have even reduced or stopped their pension contributions altogether because of rising costs (13%), while almost three in 10 (29%) admit that they may consider stopping payments in the future, and one third (30%) may think about 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 Further to this, one in 10 (10%) of those eligible to access their pension (i.e. those aged 55 or over) say they have withdrawn savings earlier than intended to supplement their income, with a further 31% intending to do so or considering it at some point in the future.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, or no one at all. Very few speak to their pension provider (15%), employer (13%), a regulated financial adviser (8%) or specialist bodies such as Pension Wise (4%) or MoneyHelper (3%).