Why saving for retirement feels harder than ever and what to do about it

If your pension pot feels a little neglected lately, you might be wondering how you can cut back and get back on track. There’s actually lots of people in the same boat as you right now. Rising everyday costs are making it hard for many of us to think beyond the next bill, let alone plan for the future.

According to research from Pension Bee, nearly 6 in 10 people have already trimmed the “nice-to-haves". Lots of people are cutting back on things like streaming subscriptions, nights out and other little luxuries.

Unfortunately, those cost-of-living pressures aren’t just squeezing our fun money, they’re creeping into our long-term plans too. Pension Bee's research revealed that:

• almost 1 in 3 people (30%) say they’re saving less than before
• more than half (51%) have either thought about, or already hit pause on, their pension contributions in the past year
• nearly a quarter (24%) worry that if they stop paying into their pension now, they’ll never catch up
• more than half worry they won’t be able to afford a comfortable retirement

If your bills are mounting up to the point where you’re considering stopping your pension contributions, it’s time to hit pause.

Pension contributions come with tax relief, and if you’re part of a workplace pension, you often get money from your employer on top of your contributions. To put it simply, pausing your pension contributions is leaving money on the table.

Read on to find out what to do before you stop contributing to your pension.

Where to turn for extra support

If rising costs are making it hard to keep up, you don’t have to tackle it all on your own. There are organisations out there that can help you get back on track without jeopardising your long-term savings.

• Citizens Advice – they’re a great first stop for free, confidential advice on everything from budgeting and benefits to dealing with debt; they can also point you towards local support schemes you might not know about
• StepChange – if debt is weighing you down, StepChange offers practical, impartial debt advice and can help you set up a repayment plan that works for your situation
• MoneyHelper – this government-backed service has tools and guidance to help you manage your money, plan for the future, and understand your pension options.
• local councils and charities – many councils run hardship funds or emergency support schemes, and local charities often provide help with essentials like food or energy bills
• benefits calculators – there are lots of free benefits calculators available online; they can help you work out what help you’re entitled to