The study, which polled 1,002 savers in Scotland, indicates that inflation across energy, food, and household bills, coupled with fluctuating interest rates, have forced 30% of respondents to curtail their long-term savings goals, while 26% have abandoned saving altogether.

However, more positively, nearly half (49%) were still able to save, albeit less than planned, in the last six months.

The Scottish Building Society Savings Barometer also measured how respondents are changing grocery and non-essential items spending, which subsequently has an impact on saving aspirations.

42% of respondents now shop around for deals more often and go for cheaper, own-brand alternatives. One third (33%) of people have had to cut out non-essential items altogether and now scrutinise the cost of an item before making a purchase.

Luxuries such as going on holiday and buying a new car in 2023 were also off the agenda for 50% of Scots, with 47% of unlikely to move home due to concerns about current mortgage rates.

Milestone events including weddings have also been put on hold for 31% of respondents.

Paul Denton, CEO at Scottish Building Society, said: “Undoubtedly, the cost-of-living crisis and changing inflation rates have impacted spending and saving habits for the majority of people with 81% of respondents still concerned about how this will play out in the year ahead.

“Our dedicated Scottish Building Society Savings Barometer lifts the lid on the day-to-day financial decisions and whilst generally optimism about the ability to save remains low, we must take positivity in that a significant proportion of people have still been able to set money aside over the last six months.”

Mr Denton continued: “The changed economic landscape has forced many people to take stock of how and where they are spending and make changes to lessen any negative impact.

“As Scottish Building Society celebrates its 175th anniversary in 2023, we have been helping our members make important financial decisions for generations and whilst times may have changed, our ethos has not.

“As a mutual organisation, we are run by and for the benefit of our members. We have been continuing to help our members ensure that any savings they have, are in the right place with Scottish Building Society and that they are working as hard as they possibly can for them.”