More than half of pension savers fear they will never be able to retire, a poll shows today. Some 56% of people who pumped cash into a pension scheme in the last 12 months believe they will never get to enjoy the benefit, according to the Savanta study for the Living Wage Foundation. Nine per cent cut contributions or stopped paying in completely in the last six months, the survey finds, with 42% of those blaming soaring living costs. Eight per cent plan to slash pension contributions in the next six months. Researchers quizzed 3,059 working adults who paid into a pension in the last 12 months quizzed online for the poll. Some 64% felt they would need to work several years beyond retirement age, while 37% were not confident they were saving enough to meet even basic needs in retirement. Workers have slashed contributions because of the cost-of-living crisis ( Image: Getty Images) Previous research showed four in five workers in defined contribution schemes - about 16 million people - were not saving at levels likely to meet their basic needs in retirement. Today’s study comes after Chancellor Jeremy Hunt used last week’s Budget to scrap the tax-free lifetime allowance limit on pension pots, and raise to £60,000 the annual amount the wealthiest can inject into their funds tax-free. The report comes as the Living Wage Foundation outlines its latest initiative, encouraging firms to be “Living Pension Employers”. Campaigners hope the voluntary savings target will help workers build up a pension pot that will provide enough income to meet basic needs in retirement. The savings target is 12% of a worker’s salary - of which employers pay in at least 7%. Living Wage Foundation director Katherine Chapman said: “Low pension saving levels are a longstanding issue and our research shows that workers are worrying about an uncertain future. Living Wage Foundation director Katherine Chapman “The current cost-of-living crisis is exacerbating the problem. “Struggling to make ends meet as living costs soar, many workers are unable to prioritise pension saving, which risks storing up a future crisis of millions unable to afford even the basics in retirement.” The Living Pension scheme launches today with six employers signed up, including insurance firm Aviva, international law company Herbert Smith Freehills and retirement and savings firm Phoenix Group, which owns Standard Life. Standard Life’s chief executive Andy Curran said: “It’s critical that people are saving enough towards their retirement, and we know that employers have an important role to play in ensuring that the right foundations are laid for their employees’ retirement.” Alison Brown, executive partner at Herbert Smith Freehills, said: “The cost-of-living crisis has highlighted the stark difficulties faced by far too many individuals who struggle to manage financially on a daily basis. “These challenges could get worse, with many people not saving enough for their future.” * Follow Mirror Politics on Snapchat , Tiktok ,
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