A third (34%) of people surveyed in September reported being financially worse off than 12 months earlier. Just over a quarter (27%) have seen an improvement in their financial position in the last 12 months, while two-fifths (39%) said their financial situation remained steady, according to the Pensions and Lifetime Savings Association (PLSA). The proportion of people reporting being financially worse off than a year ago has eased, from 44% in 2023, according to the research. However, a significant proportion of households are still needing to make cutbacks, with two-fifths (41%) feeling the pinch, edging down from nearly half (48%) last year. The most common areas for reductions in spending included dining out, takeaways and leisure activities, the survey of more than 2,000 people found. Despite reductions in many areas of everyday spending, payments into pensions were the area least likely to have been cut, the research indicated. There was also strong support for higher automatic enrolment pension contributions. Around half of those not retired (51%) believe the minimum total contribution into workplace pensions should rise from the current 8% to 12%. Many people surveyed also believe contributions, where employees currently pay 5% of qualifying earnings and employers pay 3%, should be bolstered more by employers. Nearly half (45%) think contributions should be split equally, with a further 43% arguing that employers should pay more than employees.