Pension savers urged to put more money into retirement pot

Some 18 percent of future retirees polled shared they have deprioritised short-term splurges on holidays and luxury items.

Over two-fifths of respondents would consider giving up eating out and takeaways and three in ten would even cut back on Christmas spending.

Among the most significant lifestyle changes indeed downsizing homes and applying for a second job to pay for retirement plans.

Patrick Thomson, head of Research Analysis and Policy at Phoenix Insights, broke down the “challenge” for those preparing for life post-work.

He explained: “Across the UK, we are grappling with how to make the most of our longer lives, including how we prepare and save for the years ahead.

“The challenge is clear, as only one in ten of this age group believes they could live on the state pension alone when they retire without cutting down spending. For those currently in midlife, often facing substantial financial and time pressures, it can be a critical time to take stock.

“Phoenix Insights’ research shows it’s also a time when many people are starting to take action, with 45- to 54-year-olds reprioritising their spending in order to save more, and some considering significant changes to their work and where they live.”

However, the pension expert clarified that not every retirement plan will be applicable to each person.

Mr Thompson added: “Everyone’s journey to and through retirement will be different, and it’s clear there is no one-size-fits-all for how those in midlife are saving and planning for this time in their life.

“As we are living longer than the generations before us, we all need to think differently about our futures, and the futures of those we care about. For many, this can be a challenging topic to engage with.

“Our research shows that nearly half of people aged 45-to-54 find thinking about their finances is the hardest part of retirement planning. But with the support of those around you, we can all take the steps – large or small – to build a better retirement.”