In September, a survey revealed that 34% of individuals reported experiencing a decline in their financial situation compared to the previous year.
According to a survey conducted on over 2,000 individuals, the areas where people most commonly cut back on their spending were dining out, ordering takeaways, and participating in leisure activities.
According to the research, people were least likely to reduce their payments into pensions, even though they made cuts in various other areas of their everyday spending.
A significant number of individuals who are not yet retired (51%) express a strong desire for an increase in the minimum total contribution into workplace pensions. They believe that the current 8% should be raised to 12%.
According to the survey, over half of the employees (52%) expressed concerns about the adequacy of the full state pension to support a comfortable retirement financially.
44% of people would rather have their pension investments contribute to public services like the NHS and schools. In addition, 54% of individuals prefer their funds to support companies based in the UK rather than those located overseas.
The top priority should always be to achieve the best possible returns, whether those investments are made in the UK or overseas.
Nigel Peaple, the chief policy counsel at the PLSA, suggests that while some individuals continue to experience the impact of the increasing cost of living, there are indications that certain segments of the population may have surpassed the peak of the crisis.
He emphasized that it is important for savers to prioritize higher returns, rather than solely focusing on pension investments that support UK companies and public services.
“Our top priority should always be to achieve the best possible returns, regardless of whether our investments are in the UK or abroad.”
Millions of individuals have become pension savers through automatic enrolment, with approximately 90% of eligible employees now saving for their retirement. In our groundbreaking pensions review, we will consider various possibilities to further enhance this achievement.
A spokesperson from the Department for Work and Pensions
Yonder Consulting conducted a survey of over 2,100 individuals from various regions of the UK, which included both retired and non-retired individuals.
According to a spokesperson from the Department for Work and Pensions, the introduction of automatic enrolment has successfully transformed millions of individuals into pension savers.
In fact, approximately nine out of ten eligible employees are now saving for their retirement. In light of this achievement, the department is currently conducting a thorough review of pensions and considering various options to further enhance this positive outcome.
The new Pension Schemes Bill has the potential to benefit over 15 million pension savers. This means that an average earner, who saves consistently over their career, could have an additional £11,000 in their defined contribution pot by the time they retire.