One in five adults approaching pension age fear their retirement plans are at risk as a result of the cost-of-living crisis, research shows.
A poll of 2,000 working adults, aged 45 plus, found the current economic climate has seen 12% take “drastic action” to ensure they can still have the post-employment life they hoped for.
More than one in four (28%) have considered, or made the decision, to downsize – something they may not have previously intended to do.
And 31% have adopted a short-term struggle/long-term gain approach, by cutting back on everyday spends like food, bills, and clothing, so their retirement goals remain intact.
Meanwhile, 17% have started investing in stocks and shares.
However, more than three-quarters (78%) freely admit they're not sure if their strategy will make any difference at all.
A spokesman for provider of evidence-based investment portfolio management services and financial planning software for financial advisers, Timeline, which commissioned the research, said: “Undoubtedly, we are in uncertain times, and it's natural for many people to be reactive.
“But in terms of retirement planning and investing, it’s important to look at the long-term return on investment, and not overreact to the short term.
“Our planning software and model portfolios are built around 100 years of capital markets data, and methodologies verified by Nobel prize-winning economists.
“Of course, if anyone could really see 10 years into the financial future they’d become a very rich person, so some estimations will always be involved.
“However, the view of historical events gives financial advisers and their clients a valuable long-term view, together with accurate predictions.”
The average respondent first started adapting their retirement plans in response to the cost of living crisis 11-and-a-half months ago.
Around one in six (15%) have had to change their intentions “a lot”, while 38% have shifted theirs at least somewhat.
But 12% have started selling off assets like their car, while 30% have cancelled a subscription, and 42% have already cut back on eating or drinking out.
Looking ahead, just 9% are very confident they’ll still be able to do all the things they want when they retire, like travel or spend time on hobbies.
However, only 17% have spoken to a financial advisor about their current retirement plans, according to the OnePoll data.
And 42% wish there was more advice regarding retirement available to them.
The recent economic turmoil has also left 28% of respondents more likely to seek financial advice in the future.
Timeline’s spokesman added: “Whether you’re approaching retirement, just entering the workforce, or somewhere in between, there will be a degree of financial anxiety due to all the economic uncertainty and headlines.
“Taking advice from qualified financial advisers is very important, as it helps paint a bigger picture of what you should be doing to get the retirement you’d like – and ensures you can live comfortably in your retirement and enjoy your later life.”
