Almost half of Brits have stopped saving, investing and paying into pensions because of short-term financial pressures.
Among those who are cutting back, 43 per cent say they are now thinking in a more short-term mindset as the cost of living crisis continues to bite.
It has also hit younger people, with those aged between 18-24, known as ‘Gen Z’, having stopped or reduced their savings to the tune of 59 per cent.
Women are also more likely to have been hit by the problem, with 47 per cent cutting back on savings compared to 44 per cent of men, while 10 per cent had no savings to cut back on.
However, those aged 55-64 were the least affected, with only 43 per cent cutting back, 51 per cent continuing to think long term, and only a miserly six per cent saying they had no savings at all.
The economic woes Brits are facing is “curtailing their ability to save, invest or contribute to their pension”, said Richard Eagling, pensions expert at NerdWallet.
Cutting back will “sadly have a negative impact on their long-term finances if they are unable to reverse them soon”, as he urged people not to be tempted into stopping saving.
“Especially with the state pension age set to rise” saving is important, he said, so everyone must “understand the potential impact of reducing or stopping” and “how this could hamper their attempts to reach their life goals such as a comfortable retirement.”
“In particular, those who are looking to cut their pension contributions should not overlook some of the key benefits that a private pension can provide such as tax relief and employer contributions.”