Everyday living costs take priority over pension saving for UK households following Autumn Budget

London, 3 November 2026: Everyday living costs are taking priority over pension saving for UK households, with just 9% of people identifying increasing their pension contributions as a key financial priority over the next 12 months, according to new research from PensionBee.

The findings, based on a survey of 1,000 working age nationally representative UK adults following the Autumn Budget, reveal that everyday living costs are firmly at the top of household financial priorities over the next 12 months, with 51% of respondents selecting this option. Building an emergency savings fund (32%) and paying off debts or reducing borrowing (29%) were also among the most commonly cited priorities. Respondents were able to select multiple answers to reflect the different financial priorities they were juggling.

By comparison, fewer than one in ten (9%) identified increasing their pension contributions as a priority, while 15% were focused on preparing financially for retirement. Almost one in four (24%) selected increasing their savings or investments outside their pension, suggesting that immediate financial security is taking precedence over longer-term retirement planning.

While age didn’t make a huge difference in those prioritising pension contributions, it did when it came to focusing on preparing financially for retirement. Almost a third (32%) of those aged 55 to 64 identified this as a priority over the next 12 months, double the overall average of 16%. This compares with 18% of those aged 45 to 54, highlighting how retirement planning becomes a more immediate financial consideration as people approach later life.  

The findings also highlight the pressure household finances could place on retirement saving over the next 12 months. While 40% expect their pension contributions to remain unchanged, 11% anticipate increasing them. Meanwhile, 5% expect to reduce their contributions, 4% plan to temporarily pause them and 3% expect to stop contributing altogether. A further 13% do not currently contribute to a pension, while one in five (20%) have yet to decide whether they will change their contributions. The remaining 3% preferred not to say.

When faced with an unexpected financial shortfall, almost a quarter (23%) of respondents were most likely to turn to their existing savings or emergency fund, while 17% would first look to reduce spending on non-essential items. A further 9% would use money from their current account, while 9% would borrow using a credit card, overdraft or loan. Meanwhile, 8% would ask family or friends for financial help, and 7% would look to take on additional work or seek extra income. 

Smaller proportions said they would reduce the amount they save each month (7%) or their pension contributions (2%), while 8% did not know how they would manage a shortfall and a further 8% said they would be unable to manage it. The remaining 1% selected another option.

The research also reveals mixed expectations around the financial impact of the Autumn Budget. A quarter (25%) expect to benefit a little from the measures announced, while almost one in four (24%) do not expect to benefit financially at all. A further 15% anticipate benefiting either a fair amount (9%) or a great deal (6%). Meanwhile, 11% expect to be financially worse off, while 16% say they do not know enough about the measures to assess their personal impact. The remaining 10% don't know what impact the Budget will have on their finances.

Despite the Budget's implications for personal finances, awareness of the measures announced appears relatively limited. Just 8% of respondents said they knew a lot about the changes, while 23% knew a fair amount and 29% knew a little. A further 23% had heard about the Budget but knew very little about the relevant changes, while 12% had not heard about the changes at all.

Becky O’Connor, Head of Pensions at PensionBee, said: “The findings highlight the difficult balancing act facing households. With everyday living costs, debt and emergency savings taking priority, putting more money away for retirement can understandably feel like something to tackle another day.

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“However, putting pension savings on the back burner for too long can have consequences for the retirement people are ultimately able to afford. Even relatively small increases in contributions, when household finances allow, can make a meaningful difference over time.

“The Autumn Budget is an important reminder that people need to understand how changes to the tax and savings landscape could affect their finances. Increases to tax on savings in this Budget mean that reviewing how much and where long term reserves are built up and stored, including investments, savings and pensions, is more important than ever, as most people can ill afford unnecessary tax bills, on top of everything else.” 

Research was conducted by Attest with 1,000 nationally representative UK respondents at the end of October / start of November 2026.