New Penfold research finds that 13% of UK employees have already cut or stopped pension contributions in the last 12 months, with Gen Z hardest hit at 16.5%, more than any other generation.
With nine in ten pension savers saying they would retire earlier if they could afford to, and 43% not confident their pension will fund a comfortable retirement, the gap between what people want from retirement and what they are on track for has never been more pressing.
Why Summer is a good time to think about your pension
Penfold makes the case that long-term financial confidence comes from building lasting habits
Summer tends to bring a busier social calendar and higher day-to-day costs for many households. Holidays, days out and social commitments all add up, and for some workers, pension saving can feel like something that can wait.
New research from Penfold found that 13% of UK employees have already reduced, paused or stopped their pension contributions in the last 12 months due to financial pressure. For younger workers the figure is higher. Around 16.5% of Gen Z employees have reduced their contributions, more than any other generation surveyed.
Penfold argues that financial wellbeing is not only about managing today’s costs. It is also about understanding how today’s decisions could affect longer-term goals.
Chris Eastwood, CEO and co-founder of Penfold:“When household budgets are under pressure, people naturally review where their money is going. For some, that can mean making changes to their pension contributions. Those decisions can affect what they build up over the long term, but it isn’t always easy to understand what the impact could be at the time. Understanding how today’s choices could affect your future is an important part of financial wellbeing.”
The findings come at a time when 43% of UK employees say they are not confident their pension will fund a comfortable retirement, and nine in ten pension savers say they would retire earlier than planned if they could afford to. Together, the findings highlight the importance of helping people understand where they currently stand and what their pension could mean for their future.
“A pension should feel like something that is working for you in the background. When people can see clearly what their contributions add up to and what different choices could mean for their future, they are better placed to make decisions they feel confident about,” concluded Eastwood.
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