43% have cut retirement savings due to cost-of-living crisis

cost-of-living crisis

Just over two-fifths (43%) have either reduced or stopped saving for retirement due to the cost-of-living crisis, accordiing to research by retirement specialist Just Group.

Its survey of 1,000 private sector workers aged 45-65 also found that almost six in 10 (57%) are concerned about the consequences of the rising cost of living on their retirement plans, while 71% had cut their overall expenditure.

Meanwhile nearly two-thirds (64%) of 45-65-year-olds said they feel anxious or stressed about the financial impact of the cost-of-living crisis on their lives. Almost half (49%) of 45-55-year-olds felt their employer should provide financial wellness to support them through the cost-of-living crisis compared to 35% of 56–65-year-olds.

More than half (53%) of 45-55-year-old workers also said that financial guidance or advice would make them feel more confident to face it, compared to 45% of 56-65-year-olds.

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Stephen Lowe, group communications director at Just Group, said: “It is unsurprising that workers starting to think about their transition to retirement are feeling the pressure both financially and mentally. They may be juggling kids, mortgages, a demanding job and maybe even care for elderly relatives, and the cost-of-living crisis will be an unwelcome additional burden.

“Financial guidance and advice can’t make the pressure go away, but it can help people manage it better. It helps people understand their options and gives them some confidence in how best to manage their finances, including plans for retirement. Improving access to financial advice and guidance is a resource that our research tells us many workers approaching retirement are calling for. Digital and hybrid advice and guidance services now offer employers more employee benefits to create happier, more productive colleagues.”