81% of people say they will stop saving money this year due to the demands of the current cost of living, according to research from Hodge.

The lender’s study also found more that 56% of people in the UK will look to use any savings they do have to help them survive in the current economic environment.

And, of those who are able to save, a similar amount (58%) said they would be doing so in order to create an ‘emergency fund’ should the cost of living force them to fall back on it.

Hodge asked 1,000 people how they are managing their finances to help compile its Cost of Living whitepaper, produced to help financial professionals identify pinch points their customers might be facing.

The majority of those taking part said, when it comes to savings, their priority was now to prepare for future financial hardships, with a further 20% claiming they would have to rely on cash gifts from family members to help them afford to live too.

Katie Johnson (pictured), managing director of Savings at Hodge, said: “Just as there have been significant changes reported in the way that consumers are deciding to spend their money, so too is their ability to – and attitude towards – saving money changing too.

“According to our research, the cost of everyday necessities is having a huge impact on many people’s financial wellbeing and, in lots of cases, putting a stop to savings.

“So, just as some of the larger retail brands are adapting their approach to business in support of customers at the current time, there is also a need now to consider how we are looking, as finance professionals, to make similar adjustments to our services to help savers too,” Katie added.

“What this whitepaper has shown us is that everyone is dealing with the rising cost of living in their own way – and that seeking professional advice at the present time continues to be key in supporting consumers when it comes to weathering the storm and staying financially robust in the process.”