The majority (83 per cent) of savers are concerned that the cost-of-living crisis will mean they will have to work longer before retiring to make up for a shortfall in savings, while 43 per cent are very concerned, analysis from Wealth at Work has revealed.

The survey also found that one in three (33 per cent) savers think they won’t ever be able to afford to retire at all due to increasing costs.

These concerns may be well placed, as a number of savers have already made changes to their pension contributions amid the rising prices, with the survey revealing that 13 per cent have either stopped or reduced the amount they pay into their pension due to rising costs.

“Worryingly”, almost three in ten (29 per cent), admitted they may consider stopping payments in the future, and nearly a third (30 per cent) said they may consider reducing future payments, which Wealth at Work warned will be of particular concern when lower fixed rate mortgage deals come to an end and if inflation doesn’t come down as quickly as initially thought.

On top of a reduction in pension contributions, some savers have looked to their pension to make up any financial shortfall, as the survey found that 10 per cent have withdrawn savings earlier than previously intended to supplement their income, while “shockingly” 31 per cent either intend to, or may consider it in the future.

When it comes to getting support with their pension, 56 per cent said they speak to unqualified sources such as their partner, family, friends or colleagues (40 per cent), or no one at all (16 per cent), while just 15 per cent spoke to their pension provider, 8 per cent spoke with a regulated financial adviser, and 4 per cent used Pension Wise.

Wealth at Work director, Jonathan Watts-Lay, highlighted the latest figures, particularly the proportion of savers stopping or reducing their pension saving as “alarming”, arguing that whilst this is an understandable step to take, it “really should be a last resort”.

He continued: “Employees may not realise that whilst it may make relatively small savings each month, the impact on retirement savings to be used in later life will be dramatic due to lost employer contributions and tax relief.

“As the research shows, many are concerned if they really can afford to retire at all, with many believing that they will have to work longer to make up for a shortfall in savings. For those approaching retirement, it couldn’t be more important to make sure they have a plan in place.

“As highlighted in the research, it is very common for people to turn to their friends and family for guidance on their pensions, but they may not be the most qualified or indeed knowledgeable source.

"The good news is that many employers are now offering financial education in the workplace, as well as other support for employees.”

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