The “first signs of the cost-of-living crisis” are starting to show in pensions as almost one in five schemes have experience of members asking to reduce or stop their pension contributions, according to a new survey.
The Pensions and Lifetime Savings Association (PLSA) surveyed 112 pension schemes, which included 27 Local Government Pensions Scheme (LGPS) funds.
It found that 19% of schemes overall have seen members asking about reducing or stopping their contributions. For LGPS funds, this figure was 17%.
Thirteen percent of LGPS funds said that they had members who wanted to opt out, while 48% said they expected more members might want to reduce pension contributions in the next six months.
Nigel Peaple, PLSA’s director of policy and advocacy, 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.
“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,” Peaple added.
The survey comes ahead of the PLSA’s annual conference in Liverpool on 12-13 October, where cost-of-living concerns in the context of pensions saving will be a major theme.
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