Three in four people ‘taking action to cope with financial pressures’

Nearly a quarter have already been forced to dip into their savings

Households are being forced to make tough decisions about their money (PA)

Four out of five adults (81 per cent) are concerned about making ends meet as living costs surge and three-quarters (76 per cent) say they need to take action to cope with financial pressures, a report has found.

Over a third (35 per cent) plan to cut back on non-essential leisure and holiday spending, according to the Scottish Widows report.

Nearly a quarter (24 per cent) had already dipped into their savings.

Over half (57 per cent) of those surveyed said they were concerned about their finances in retirement, while half (50 per cent) do not feel they are preparing adequately for later life.

One in nine (11 per cent) of respondents in their fifties reported being worried about having to access their pension savings early to support their short-term financial resilience.

Pete Glancy, head of policy at Scottish Widows, said: “We are facing a myriad of issues and there are no easy solutions.

“It's sadly understandable that households are being forced to make some tough choices in their budgets, but it’s important they do so whilst taking a longer-term look at their finances.”

He added: “As a guide, we recommend that an individual should look to save a minimum of 12 per cent of their salary to secure a consistent quality of life, but aiming for at least 15 per cent is more likely to provide a comfortable retirement.”

A general survey was carried out across Britain involving more than 5,000 people in May.

PA