Workplace pension contributions seem to have been unaffected by peoples’ budget adjustments, research from Barnett Waddingham has suggested, after revealing that the number of those looking to reduce contributions has remained unchanged since September.

The survey found that the proportion of individuals reducing their workplace pension contributions remained at 6 per cent in December, while the proportion of savers looking to draw down from their pension also remained steady at 3 per cent.

However, the research showed an increase of people reducing their private pension contributions, up from 6 per cent to 10 per cent in December, with a growing number of individuals seemingly cutting their long-term savings to deal with the immediate impact.

The research also highlighted the broader financial impact of the rising cost of living, revealing that more savers now intend to spend more on their credit card, up from 9 per cent to 12 per cent, with the use of credit cards notably more favourable among younger individuals, at 17 per cent.

Barnett Waddingham partner and head of DC, Mark Futcher, acknowledged that some trends may reflect an adjustment for the festive period, warning however, that the figures also highlight a continued concern for people’s savings in the long-term.

He continued: “In face of the worsening economic climate, it’s no surprise that people are continuing to adjust budgets to see themselves through the winter period – with some demographics taking more drastic measures than others.

“An increased use of credit can be a worrying figure to see, particularly with interest rates predicted to rise imminently, and suggests people are relying on quick access to credit to get by.

"Reassuringly, cutting back on workplace pensions hasn’t become a growing trend, and people should only consider this as a last resort.

"While it may help to alleviate immediate financial pressures, this still means turning down ‘free’ contributions from the taxman and your employer.

"“Hopefully the trend towards cutting private pensions doesn’t translate into the workplace, and we advise anyone considering this to talk to their employer first. They may be able to up employer contributions to workplace schemes or even consider continuing to pay employee contributions if you need to pause contributions temporarily. “

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