Signs of Relief: Financial Hardship Easing for Many (FG Trade via Getty Images)

After years of financial hardship, there are finally signs that the cost of living crisis is starting to lift. Research conducted by Hargreaves Lansdown shows that only 17% of people have stopped or cut back on pension contributions in the past six months, down from 22% this time last year.

Furthermore, 7% of individuals have chosen to boost their contributions in the past six months, with an additional 2% increasing contributions after previously cutting back. However, older individuals were more likely to cut back, with one quarter of those over 55 admitting to doing so compared to just 11% of 18-34 year olds.

These findings highlight the impact of the cost of living crisis on retirement planning, with older individuals potentially facing challenges in filling gaps in their savings. It is important for individuals who have had to cut back on pension contributions to reassess their financial situation regularly and consider ways to increase contributions, such as taking advantage of employer matches.

Taking small but important steps to boost contributions, such as increasing them with each new job or pay increase, can help individuals rebuild their pensions after facing financial difficulties. It is crucial for individuals to stay proactive in managing their finances and planning for retirement, especially in the face of economic challenges.

Overall, these signs of improvement in pension contributions offer hope for individuals looking to rebuild their financial security and plan for a more stable future.