|
03-Apr-08 11:15 [Pensions]
Pension contributions in UK have halved
The amount that people in Britain are contributing towards their pensions scheme has nearly halved over the past year, according to new research.
A report from Prudential has revealed that on average Britons have cut their monthly contributions by 48.3 per cent.
Chris Grayling, Conservative work and pensions secretary, said: "This is hugely disappointing, but unsurprising. Given the damage to our pensions system under Gordon Brown, it is little wonder that people are more and more unlikely to save."
Gary Shaughnessy, managing director of the retail life and pensions division of Prudential, also expressed his concern at the figures saying reducing contributions to a pensions scheme may be attractive in the short-term but saving as early as possible is "vital".
On average adults who have not retired in the UK pay £144.57 a month into their pension funds.
The Association of British Insurers (ABI) has told of its agreement with the decision of the government to not introduce a higher contribution cap in the first year of personal accounts.
Find out more>
An independent pensions adviser has stated that the pension crisis has deteriorated in recent times, with private schemes being hit.
Find out more>
The Pension Protection Fund (PPF) has announced that it rescued a further four pension schemes during the month of September.
Find out more>
|
