Prudential expresses concern over savings dip

06/08/2008

People are being forced to pay less into their pensions as a result of the credit crunch, new analysis from Prudential suggests.

The firm also said that 37 per cent of working-age adults are currently "losing sleep" over their lack of retirement savings, and that just 27 per cent believe that they are saving enough to "maintain" their current standard of living.

Julie Mulvanny, head of business development for individual pensions at Prudential, said: "If you are struggling to just pay your mortgage and pay the bills in general, I think pensions are an easy one to stop making your payments to."

Kevin Still, EuroDebt director, added: "Consumer confidence has been knocked by the poor performance of pension funds, concerns over job security and the immediate need to make ends meet in the current economic climate where market experts continue to speculate on how long the credit crunch will last.

"As a debt management company we try and ensure that payments to pension funds and critical insurances are maintained as priority payments, especially for clients that will reach retirement age during the lifetime of their Debt Management Plan."

Tags; Current UK Economy, Retirement Money Problems,

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