One in eight workers have cut pension contributions over the past year, research reveals

More than one in eight workers have reduced, paused or stopped their pension contributions in the past year, according to Penfold’s latest report.

Nearly 10% reduced contributions, while 3.5% paused or stopped altogether.

64% said they had maintained their contribution levels despite significant financial pressures.

43% of workers said they are not confident they will achieve a comfortable retirement. 

Chris Eastwood, CEO and co-founder at Penfold, said: “It’s completely understandable that people reassess their finances when household budgets are under pressure. 

“For some, reducing pension contributions can feel like one of the few available options when balancing rising costs with everyday spending.

“However, the impact of these decisions is not always easy to see straight away, making it difficult to weigh up the true long-term cost.”

Eastwood added: “Too often, pension saving remains disconnected from people’s day-to-day financial lives, and many savers lack the visibility needed to understand how today’s choices could affect their future retirement income.