Brits 'cutting back on pensions, insurance costs'

16/10/2008

Pension plan and insurance premium payments are being cut back or even dropped altogether by cash-strapped Britons, it has been claimed.

Price comparison website uSwitch said that 42 per cent had taken the drastic action, as the credit crunch puts the squeeze on their budgets.
When those who had ditched insurance payments were asked what type of cover was affected, 15 per cent said health and dental insurance and 13 per cent said life insurance.

Ashton Berkhauer, insurance expert at uSwitch, said: "There's a big difference between cutting down on luxuries or your weekly shop and cutting out on life insurance or pension savings.

"The potential impact on you or your family finances if you get it wrong could be huge and long lasting, so it's important to go into it with your eyes wide open."

uSwitch also found that 86 per cent of those who had cut back on insurance and pension costs saved less than £50 a month by doing so.

Tags; Income Worries and Debt, Young Family Finances, Credit Card Lifestyle, Recent Graduate Debt,

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