49% of working adults have changed their retirement plans due to cost of living crisis

49% of working adults have changed their retirement plans because of the cost-of-living crisis, a new study from Pensions Management Institute (PMI) has shown. PMI is the professional body that supports and develops the experts who run UK pension schemes.

The study also revealed:

• 24% of people are set to delay their retirement
•  23% have reduced their pension contributions
• 5% said they've stopped their pension contributions

Additionally, two-thirds of people said they didn’t have the knowledge to choose their pension provider, even though 60% showed some interest in being able to choose their own.

PMI stated that these figures are relevant to the government’s recent lifetime pot for life proposals, showing the vital importance of improving financial and pension education throughout society before implementing such a radical change. As of the spring Budget, Jeremy Hunt has confirmed that he will continue to "explore" plans for this proposal.

PMI Council member Tim Box said: “Our research shows the concerns that many people have about how well they can prepare for retirement.

“It is vital that the government ensures that savers are given appropriate support and education to save for retirement in an era when it is likely that state pension benefits will only become available in an individual’s eighth decade.”

While the government hasn’t made any moves yet, this data highlights that there’s a need for both more help with pensions, and pension education.

Help for pensions:

If you’re currently over State Pension age and on a low income, pension credit gives you extra money to help with your living costs. Find out if you’re eligible.

Help for cost of living:

If you’re currently struggling to afford living costs, we may be able to help.