Concerns over the impact of the cost-of-living crisis on pension savings have continued, after
research from LCP revealed that 51 per cent of employers have had employees request to reduce pension contributions, and 47 per cent have had requests from employees to stop contributions altogether.

The survey also found that 10 per cent of employers are expecting an increase in both reducing and stopping pension contributions, as pension saving lost fell from first place in people's financial priorities to sixth, replaced by budgeting and managing everyday money.

More broadly, the research also found that over half (55 per cent) of employees say they have struggled to cope with daily life in the past year.

LCP senior consultant and head of financial wellbeing, Heidi Allan, stated: “There has been a lot of speculation that people will start to reduce or halt their pension contributions as they try and save elsewhere as life becomes more expensive.

"Our survey highlights that this is a trend that employers are starting to see and are expecting to increase.

“Of course, as inflation bites and energy costs remain high, it’s no surprise that people are prioritising saving for today rather than saving for tomorrow.

"It’s clear that financial issues are taking up an increasing amount of employee’s time and having an impact on businesses’ bottom line.”

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