54% of UK adults believe that their generation’s standard of living when retired will be lower than that of their parents or grandparents, according to new research by SmartSave, a Chetwood Financial company.

The digital bank commissioned an independent, nationally representative survey of 2,000 UK adults. It found that 37% of UK adults in work are worried they will not have the means to help with their children’s and/or grandchildren’s financial futures.

40% of all respondents stated that they are financially worse off than they were two years ago – rising to 46% among those aged 35-54. Meanwhile, 22% felt that if the cost of living keeps increasing, they’ll have no choice but to decrease or cancel their pension contributions.

Looking to the future, 23% of respondents are considering retiring abroad due to the cost of living in the UK.

Andy Mielczarek, founder and CEO of SmartSave, said: “For many, it feels that the traditional notion of a well-earned retirement at the end of decades of work is becoming less and less assured. Rather, savers are increasingly likely to think that a decent retirement is out of reach compared to earlier generations.

“Saving not only for your own retirement but for the future prosperity of your family is one of the great motivators of success, so to see such insecurity in the outlook of these respondents is disheartening. Cancelling pension contributions to afford the cost of living is inherently unsustainable, and it’s clear that the challenges of today are having an impact on tomorrow.

“It is critical that consumers are provided with the freedom to fulfil their financial goals, especially when it comes to creating retirement plans. The variety of savings and investing options available today is promising, but the financial industry must do more to increase public education and awareness. This will ensure people can make educated decisions and achieve their desired futures when leaving the world of work.”