Fewer people are reducing their pension contributions as the cost-of-living crisis eases, according to the latest research from Hargreaves Lansdown.
It found that just 17 per cent of those surveyed had reduced or stopped their pension contribution in the past six months. This is a down on the 22 per cent who who said they had cut or reduce pension contributions 12 months ago.
However the research, conducted in April this year, found that older people were more likely to be cutting back on pension savings, with more than 25 per cent reducing or stopping contributions, compared to just 11 per cent of the 18-25 age group.
In contrast the survey found that just 7 per cent said they were had contributed more to their pensions over the past six months. A further 2 per cent said they had boosted their contributions after previously cutting back.
Hargreaves Lansdown, head of retirement analysis Helen Morrissey says: “There are at last signs that the cost-of-living crisis is starting to ease, with people less likely to cut back or stop contributions to their pension.
“And there are also signs that people are looking to rebuild their pensions after these difficult times.”
She said the fact that the survey found that older people were more likely to have reduced pension contributions could reflect the fact that some of these have exited the workplace, due to long terms sickness for example. She says that the most recent Labour Market data shows economic inactivity in the latest quarter being driven by older workers.
She adds some may already have a decent amount saved for retirement but others have gaps to fill in their retirement planning.
Morrissey adds: “These results are also borne out in the most recent HL Savings and Resilience Barometer which shows just 40 per cent of older households are on track for a moderate retirement compared to 43 per cent of Generation X households.”
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