Six in 10 (59%) 45-54 year-olds are taking action to save more for retirement, Phoenix Group has found.

In the latest survey from the group’s longevity think tank, Phoenix Insights, over two fifths (44%) of the 2,000 respondents said that they would consider giving up eating out or takeaways in order to save more, with three in 10 (29%) stating that they would cut back on Christmas spending.

Phoenix Group has found that people in the 45-54 age range are facing acute pension savings challenges, with the average person needing £160,000 more in their pension pot for a moderate standard of living in retirement.

Other saving considerations including spending less money on holidays and luxury items (18%), increasing their workplace pension (14%) or putting more money into a personal pension (14%).

Some respondents said they are considering more significant lifestyle changes, including downsizing their home (10%) and applying for a second job (8%) to save more for retirement, equating to 710,000 45-54 year-olds in the UK.

Head of research analysis and policy at Phoenix Insights, Patrick Thomson, said: “Across the UK, we are grappling with how to make the most of our longer lives, including how we prepare and save for the years ahead. The challenge is clear, as only one in ten (10%) of this age group believes they could live on the State Pension alone when they retire without cutting down spending.

“For those currently in midlife, often facing substantial financial and time pressures, it can be a critical time to take stock. Phoenix Insights’ research shows it’s also a time when many people are starting to take action, with 45-54 year-olds reprioritising their spending in order to save more, and some considering significant changes to their work and where they live.”

Phoenix Insights has previously found that 45-54 year-olds with workplace pensions are considerably less likely to hold only a defined benefit scheme for when they retire compared to those aged 55 and over.

At the same time, this generation of workers may have missed out on the benefits of auto-enrolment for as much as 21 years of their working life, as the policy came into force in October 2012 and only applies to employees aged 22 and over.

Despite the challenges, a large group of people within the 45-54 age range are addressing them head on, with over four in 10 (42%) saying they have a plan for how they are saving for retirement, and 45% trying to save more.

Thomson added: “Everyone’s journey to and through retirement will be different, and it’s clear there is no one-size-fits-all for how those in midlife are saving and planning for this time in their life. As we are living longer than the generations before us, we all need to think differently about our futures, and the futures of those we care about. For many, this can be a challenging topic to engage with.

“Our research shows that nearly half (49%) of people aged 45-to-54 find thinking about their finances is the hardest part of retirement planning. But with the support of those around you, we can all take the steps – large or small – to build a better retirement.”

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