Prudential: Pension contributions already plummeting

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Prudential: Pension contributions already plummeting

Mon 17th Nov 2008

Prudential has released a study today which reveals that 18 per cent of UK workers have reduced the amount they pay into their pension fund as a result of the credit crunch.

Voluntary pension scheme contributions have dropped by 53 per cent in the last 18 months, with UK workers now paying an average of £129 a month down from £279 in March 2007.

Martyn Bogira, Prudential's defined contributions director, advised people not to cut their pension contributions as it would have an impact on the amount available to them when they retired.

She said: "It is staggering to see how much UK pension contributions are being scaled back as people look to reduce their outgoings.

"The impact of this in retirement will be significant", she added.

Prudential's survey comes hot on the heels of a study published by AXA, which revealed that 1.5 million adults in the UK are planning on taking a break from pension payments in order to save money.

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