In the cost-of-living crisis, many people across the country are forsaking saving for retirement to cope with their current financial issues. Among the tactics adopted by savers in recent months is to pause or reduce their pension contributions, and in some cases, end them entirely. However, the knock-on effects will be felt financially when they are no longer working.
Recent research has uncovered that one in every six Britons is now selecting this option. Unfortunately, the study also found that those who pause their present pension contributions for just one year could potentially be reducing the size of their retirement fund by as much as £40,000.
Savers seeking assistance with retirement planning in Chester, Birmingham and other cities across the UK often consult wealth managers for advice. Offering holistic financial guidance, wealth management services offer a wide range of expert help, including portfolio management and estate and retirement planning. By putting a plan in place early, savers can ensure they have sufficient provisions for the future.
The increased cost of products, services and utilities is leading many people approaching retirement to use their accumulated funds to help their children and grandchildren financially. This includes supporting them through further education and assisting them to be able to afford a property of their own.
Researchers commented that the fact that such a low number of people are opting to alter their pension contributions was encouraging. If UK savers face further strains on their finances, this figure is likely to increase.