The cost of living crisis has resulted in half of 18–34 year olds reducing or halting regular savings, according to a new survey.

The survey found that nearly two fifths (42%) of all UK adults had cut back on saving.

More than a third (32%) of those aged 55 have cut back, according to the survey of 2,000 UK adults, commissioned by retirement specialist and financial wellbeing firm Wealth at Work. 

The company revealed that young people have been hit hard by the cost of living crisis, as they spend, on average, double on essentials like rent or bills than people aged over 51. 

The survey found that nearly a third (32%) of working 18-34 year olds knew they should be saving more for retirement and only 16% believed their savings put them on track for a comfortable retirement. 

More than a fifth of young people (21%) had no idea how much their pension was worth and almost a quarter (24%) had no idea how much they will need to have for a comfortable retirement. 

Only a quarter (25%) of young people knew they could save more into their pension than their default contribution rate. 

Jonathan Watts-Lay, director, Wealth at Work, said: “It’s very concerning that young people are having to reduce or completely stop their saving in an attempt to free up money to pay for ever increasing bills. 

“Whilst it is completely understandable, it is also important to recognise that stopping saving now could have a dramatic impact on their future, and something they regret later in life. It is important to still save what they can.”

He added: “Saving money is a habit, and once it is stopped, it is very difficult to start up again.” 

• The survey of 2,000 UK adults was carried out by Opinium from 8 - 11 April.