Pension saving has remained a priority for savers despite cost-of-living pressures, according to research from People’s Partnership, which revealed that only 2 per cent of pension savers have stopped paying into a pension in the past six months.

In contrast, more than a third (39 per cent) of pension holders have chosen to eat out less, while 21 per cent have cut back on holiday spending, more than four in 10 (44 per cent) have resorted to buying cheaper brands or ‘own label’ products, and a third (33 per cent) are reviewing their direct debits or standing orders.

A similar trend was also revealed when looking ahead, as only 4 per cent of pension holders said they would consider pausing their retirement saving in the next 12 months, while 4 per cent said they would also think about reducing the amount they pay into their pension in the next year.

In addition to this, 7 per cent of respondents claimed they would look to increase their pension contributions in the next 12 months.

However, 50 per cent of savers expected to buy cheaper brands or own label products over the next 12 months, while 46 per cent expected to go out less often, 39 per cent planned to review their direct debits or standing orders, and more than a third (35 per cent) said they would cut back on holiday spend.

Commenting on the findings, People’s Partnership director of policy, Phil Brown, stated: “We cannot underestimate the financial pressures facing people across the UK at the moment, with inflation at a 40-year high. For some, reviewing what they’re paying into their pension will be the right thing.

“However, with 60 per cent of people across the UK not saving enough to maintain their current standard of living in retirement, it’s really reassuring that despite the current economic climate, pensions remain a priority for people who are looking at other ways to cut back before touching their pension pot.

“It is clear that the record levels of retirement saving, which is in no small part due to the introduction of automatic enrolment 10 years ago, means that pensions are as important as they ever have been to UK workers.”

Industry research has suggested that, despite concerns to the contrary, the cost-of-living crisis has had little impact on workplace pension contributions, although the number of savers cutting their private pension contributions has fallen over the past three months.

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