A fifth of pension schemes have reported savers asking about or stopping their pension contributions, with nearly one in five (17%) savers wanting early access to their pension as the cost-of-living crisis takes hold, data from the Pensions and Lifetime Savings Association has shown.
Only a quarter of scheme respondents said they have seen no changes in saver behaviour over the past few months.
However, only 12% of schemes said they had seen members wanting to opt out, which is only marginally above the long-term trend of 9%. But, while savers haven’t tended to make changes to their contributions rates, the number of members seeking help and guidance on financial management has risen.
The survey also showed that almost half of pension schemes (45%) expect more savers will want to reduce pension contributions in the next six months and around one in three expect members to want to access their pension from age 55.
To help members deal with the rising cost of living, more than a third (35%) of PLSA members have put special measures in place, with more than a quarter (28%) planning to do so. The main measure pension schemes have opted for is signposting advice or guidance on managing debt on financial wellbeing, followed by providing more information on pension planning and highlighting the risk of pension scams.
Around a third have also signposted information on automatic enrolment, including that the employee can opt out and will be automatically re-enrolled after a period of time, and support and guidance on pension transfers.
Nigel Peaple, director of policy and advocacy at PLSA, said: “As the cost of living crisis continues to pose challenges for many people up and down the country, we are seeing the first signs of this manifesting itself regarding workplace pensions.
“Our survey shows opt-out rates remain low and that most people are choosing to maintain their pension contributions with the related benefits from employer contributions and tax relief.
“However, the cost-of-living crisis will affect each household differently, so it is not surprising that some people have been asking about accessing their pension early, once they are over 55 years of age, and that schemes believe some savers will reduce their pension contributions over the next 6 months.
“Many schemes are working hard to provide information and guidance that will signpost the options savers have regarding pensions. We hope this will support people in making well informed decisions.”
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