18% of Brits cut pension contributions to survive credit crunch
17.11.2008
Nearly one in five UK workers have had to make cut backs to their pension savings due to the financial strain of the credit crunch, Prudential has revealed.
A survey commissioned by the financial services company revealed that voluntary contributions have declined by 53 per cent over the space of 18 months as average savings put away each month by Brits dropped from £279.38 to £129.35.
Defined contributions director at Prudential Martyn Bogira described the cuts as "staggering".
He added: "While a pension fund may seem a relatively pain free way to increase disposable income today, the impact of this in retirement will be significant."
Meanwhile, Axa has revealed that around 1.5 million pension holders are considering stopping their contributions entirely in a bid to save money before the country officially plunges into recession.
The company warned that the effects of so many people freezing their payments for two years would mean £34.97 billion being lost from pension funds.
A survey commissioned by the financial services company revealed that voluntary contributions have declined by 53 per cent over the space of 18 months as average savings put away each month by Brits dropped from £279.38 to £129.35.
Defined contributions director at Prudential Martyn Bogira described the cuts as "staggering".
He added: "While a pension fund may seem a relatively pain free way to increase disposable income today, the impact of this in retirement will be significant."
Meanwhile, Axa has revealed that around 1.5 million pension holders are considering stopping their contributions entirely in a bid to save money before the country officially plunges into recession.
The company warned that the effects of so many people freezing their payments for two years would mean £34.97 billion being lost from pension funds.