One in three fear they won’t be able to afford to retire – report
As financial pressures on UK employees continue to grow, new research* shows eight in 10 (83%) employees 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.
The figures from WEALTH at Work also reveal one in three (33%) people think they won’t ever be able to afford to retire at all due to increasing costs. This is despite the success of auto-enrolment, launched more than a decade ago.
While more than one in 10 (13%) have either stopped or reduced the amount they pay into their pension due to rising costs, worryingly, almost three in 10 (29%), say they may consider stopping payments and one-third (30%) may consider reducing their payments.
This is of particular concern when lower fixed-rate mortgage deals come to an end and if inflation doesn’t come down as quickly as initially expected.
Drawing on pension savings
Further to this, of those eligible to access their pension, one in 10 (10%) have withdrawn savings to supplement their income. But, shockingly, 31% either intend to, or may consider it in future.
When it comes to getting support with their pension, 56% say they talk to unqualified sources such as their partner, family, friends or colleagues (40%), or no one at all (16%). Few speak to their pension provider (15%), employer (13%), a regulated financial adviser (8%) or specialist bodies such as Pension Wise (4%) or Money Helper (3%).
More than one in three (37%) don’t feel supported in their workplace when it comes to getting help in understanding their finances, but separate research by the Reward and Employee Benefits Association suggests that more employers are starting to offer this support**.
Alarming figures
Jonathan Watts-Lay, director, WEALTH at work, says: “It’s alarming that these latest figures suggest that so many people are thinking about stopping or reducing their pension contributions to help alleviate current financial pressures.
“While this is understandable, it really should be a last resort. Employees may not realise that while 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.”
He adds: “As highlighted in the research, it is very common for people to turn to their friends and family for guidance on 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.”
*Research carried out by Opinion Matters between 13/4/23 and 17/04/23. 2025 UK adults aged 22+ in full time employment were surveyed. The report is available here.
**Research cited from the REBA/WEALTH at Work Employee Financial Wellbeing Survey 2022, carried out online between April and May 2022. Responses received from 289 wellbeing, HR and employee benefits specialists, representing around 1 million employees, working at organisations of various sizes and across a broad range of industry sectors.
In partnership with WEALTH at work
WEALTH at work is a leading financial wellbeing and retirement specialist - helping those in the workplace to improve their financial future.
