Over half (59 per cent) of 45-to 54-year-olds, around 5.2 million people, have taken action to save more for retirement, with 14 per cent of midlifers increasing contributions to a workplace pension, research from Phoenix Insights has revealed.

The survey found that many midlifers are also reprioritising their current spending to ensure they can support themselves in the future, with a fifth (18 per cent) cutting back on short-term splurges such as holidays and luxury items to save more for retirement.

Alongside this, around 14 per cent of midlifers have put more money into a personal pension, 14 per cent have sold belongings they no longer need, and 13 per cent have set up automatic transfers into savings accounts.

A number of respondents also suggested that they would be willing to make small sacrifices over the next ten years in order to prioritise saving for retirement.

In particular, 44 per cent said that they would consider sacrificing eating out and takeaways, while 35 per cent would consider not buying a new car, 33 per cent would consider sacrificing holidays, and 29 per cent would be willing to cut Christmas spending.

However, some midlifers were considering making significant lifestyle changes to support their income later in life, with 10 per cent admitting that they are considering downsizing their home to help them save more for retirement.

Some were also looking to change jobs or take on more work to bolster their long-term savings, with 8 per cent considering applying for a higher paid job and a further 8 per cent considering applying for a second job – equivalent to 710,000 45 to 54-year-olds across the UK.

Phoenix Group pointed out that midlifers in the UK face acute challenges when preparing for retirement, with respondents admitting that the high cost of living (63 per cent) and increasing mortgage costs (20 per cent) are making it harder to save.

This is a concern, as Phoenix Group estimated that 45- to 54-year-olds in the UK currently have £88,000 on average in retirement savings, meaning this age group will need to save £160,000 more on average for a moderate standard of living in retirement, based on Pensions and Lifetime Savings Association (PLSA) estimates.

Despite this, Phoenix highlighted the findings as demonstration that there is a large cohort of those aged 45 to 54 that are addressing these challenges head on, with 42 per cent saying that they have a plan for how they are saving for retirement, and 45 per cent are trying to save more.

Phoenix Insight head of research analysis and policy, Patrick Thomson, stated: “Across the UK, we are grappling with how to make the most of our longer lives, including how we prepare and save for the years ahead.

"The challenge is clear, as only one in ten (10 per cent) of this age group believes they could live on the state pension alone when they retire without cutting down spending.

“For those currently in midlife, often facing substantial financial and time pressures, it can be a critical time to take stock. Phoenix Insights’ research shows it’s also a time when many people are starting to take action, with 45- to 54-year-olds reprioritising their spending in order to save more, and some considering significant changes to their work and where they live.

“Everyone’s journey to and through retirement will be different, and it’s clear there is no one-size-fits-all for how those in midlife are saving and planning for this time in their life. As we are living longer than the generations before us, we all need to think differently about our futures, and the futures of those we care about. For many, this can be a challenging topic to engage with.

“Our research shows that nearly half (49 per cent) of people aged 45-to-54 find thinking about their finances is the hardest part of retirement planning. But with the support of those around you, we can all take the steps – large or small – to build a better retirement.”

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