One in two younger adults have reduced or stopped regular saving as a result of the cost of living crisis, new research has shown.

The findings, published by financial wellbeing and retirement specialist WEALTH at work, revealed that exactly 50% of adults aged between 18 and 34 have cut down on regular savings.

WEALTH at work’s research, based on a according to a survey of 2,000 UK adults, showed that this compared to over two fifths (42%) of all UK adults, and more than a third (32%) of those aged 55 and over.

The study also uncovered some concerns about pensions and future retirement savings. Nearly a third (32%) of working 18 to 34 year olds said they should be saving more for their retirement and only 16% believe their savings are on track for a comfortable retirement.

Furthermore, more than a fifth (21%) of this group stated that they have no idea how much their pension is worth, while around a quarter (24%) have no idea how much they will need to have for a comfortable retirement.

“It’s very concerning that young people are having to reduce or completely stop their saving in an attempt to free up money to pay for ever increasing bills,” commented WEALTH at work director, Jonathan Watts-Lay.

“Whilst it is completely understandable, it is also important to recognise that stopping saving now could have a dramatic impact on their future, and something they regret later in life. It is important to still save what they can.

“Saving may not be something many employees are thinking about in their twenties, it is really important that they understand the difference that saving more early on can make, compared to starting in their thirties or forties, especially if their employer will match extra pension contributions.”

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