Cutting pension contributions 'has serious consequences'

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Cutting pension contributions 'has serious consequences'

Mon 19th Oct 2009

People need to understand the impact that cutting back the amount that they are paying in to their pension schemes can have, according to an industry expert.

Anna Sofat, director of ADIDDI Wealth, made her comments following research by Scottish Widows which indicated that women are saving less for retirement than men and the gap between the genders is growing.

She pointed out that it may help women if it is explained to them more thoroughly what kind of impact it will have on their pension if they cut back or stop paying money into a scheme.

"I think if people are inclined or having to scale back for one reason or the other, there ought to be more proactive methods to make sure they understand the implications," Ms Sofat explained.

This is especially the case when women go on maternity leave, when employers should be offering more information on how best to keep saving for retirement, she added.

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