Savers are contributing more to their pension and withdrawing less during the current lockdown, latest analysis from PensionBee finds.
The provider said, while the overall proportion of its customers making pension contributions fell from 19% to 17% in April this year compared to 2019, average monthly pension contribution had increased by 43%, from £1,225 in April 2019 to £1,752 in April 2020.
PensionBee also found that in April 2020, the average pension withdrawal size reduced by 25%, declining from £10,900 in 2019 to £8,200. The proportion of its customers making withdrawals decreased by 33%, year on year, with only 8% of customers aged 55 and over choosing to withdraw money from their pension in April 2020.
It said it also saw a 24% increase in customers who completed their first pension transfer in April 2020 compared to April 2019 - something PensionBee said signalled that consumers may be using their time in lockdown to organise their finances.
The findings follow separate data released by market research company Ipsos Mori last month, which showed that, as a result of lockdown, two-thirds of Brits were spending less than usual, and almost a third were saving more.
PensionBee chief executive Romi Savova said: "It is evident that consumers have become more prudent in an era of increased uncertainty, and where possible they are saving more and spending less. Where consumers are no longer spending money on everyday expenses such as commuting and eating out, they are redirecting their disposable income to their pensions. For those in retirement who are withdrawing less, prudence may be driven by apprehension about future spending requirements in the context of a weaker economy.
"We would encourage customers who have a larger disposable income to continue saving, and for those in retirement to keep as much of their pension invested as possible to ensure they're well positioned to benefit from the eventual economic recovery."
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