Almost a quarter (24%) of the over 500 Britons surveyed by YouGov on behalf of Scottish Widows in March had already dipped into their savings.

Over a third (35%) planned to cut back on non-essential leisure and holiday spending, while others were being forced to make harder decisions, such as cutting back on essentials like food and utilities (16%).

Over half (57%) of those surveyed said they were concerned about their finances in retirement, with a similar number (50%) saying they did not feel they were preparing adequately for retirement.

One in five (18%) said their pension savings were invested in cash or cash-like assets, or low-risk assets such as UK Government bonds, or that they were planning to invest their pension in such assets.

According to Scottish Widows, the average person aged 35 to 54 years old, who holds half of their £36,200 pension savings fully in cash, could be exposed to losses of over £1,300 in a single year in real terms, and over £2,100 in two years due to the impact of inflation and the economic crisis.

Over 15% of those between 50 and 59 held, or desired to hold, the majority of their pension savings in cash. This rose to 29% for those already retired.

One in ten (11%) of respondents in their 50s said they were worried about potentially 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 while taking a longer-term look at their finances.”

• YouGov surveyed 5,025 adults between 8 and 15 March on behalf of Scottish Widows. A further 1,002 adults were surveyed on 30 March to better understand the retirement prospects of minority ethnic groups.