Brits 'should consider impact' of cutting pension contributions
28.10.2008
People hoping to cut their outgoings to save during the credit crunch should think about the impact of reducing pension contributions, according to Bestinvest.
Adrian Lowcocks, senior investments advisor at the regulated independent service, said: "The issue for anyone is if you cut pension contributions obviously it can impact on the potential size of the portfolio or your pension at the end of its lifespan."
But he added that people in high-risk affordability situations should make mortgage payments their priority since pension contributions tend to be extended over a longer period and are therefore "not an immediate concern".
A 2008 report released by Life Trust Insurance revealed that the cost of retirement for a typical UK household is around £413,000 and £326,700 for an individual living alone.
The report highlighted the fact that increasing longevity is a big factor in these figures.
If a person retires at 65 and lives until 100 their living costs could rise to over £700,000.
Adrian Lowcocks, senior investments advisor at the regulated independent service, said: "The issue for anyone is if you cut pension contributions obviously it can impact on the potential size of the portfolio or your pension at the end of its lifespan."
But he added that people in high-risk affordability situations should make mortgage payments their priority since pension contributions tend to be extended over a longer period and are therefore "not an immediate concern".
A 2008 report released by Life Trust Insurance revealed that the cost of retirement for a typical UK household is around £413,000 and £326,700 for an individual living alone.
The report highlighted the fact that increasing longevity is a big factor in these figures.
If a person retires at 65 and lives until 100 their living costs could rise to over £700,000.