Barnett Waddingham polled 2,000 consumers and found that nearly one in ten people (7 per cent) are planning to reduce workplace pension contributions. This figure is highest in the 18 to 34 age group at 18 per cent, FT Adviser reports.

The consultancy firm said a reduction in contributions is a concerning move at “a time when it’s vital to lay the foundations for a stable financial future” for this age group (18-34).

Mark Futcher, head of defined contribution at Barnett Waddingham, said: “The cost-of-living crisis has forced many people to take a long hard look at our finances. But while there’s clear merit in doing some financial spring cleaning, cutting back on financial planning commitments could have a dramatic impact on long-term financial well-being.”

“At a time of significant financial hardship, it’s important that employers do their bit to help employees keep their heads above water.

“At a basic level this means providing stronger financial guidance for employees and encouraging them to think twice before making knee jerk decisions with their finances.

“Better still would be to help valued employees shoulder the financial burden by upping employer contributions to workplace schemes, and even considering continuing to pay employee contributions if an individual needs to pause contributions temporarily.”