Pension squeeze means millions 'aren't saving'

16/06/2009

Britons are making pensions less of a priority due to the financial squeeze of the credit crunch and recession, according to the Lincoln Financial Group.

A new report from the firm showed that around 12 million people are not making contributions to retirement savings plans at the moment.

This could leave them with just the basic state pension to depend on when they reach retirement age - leaving their personal finances vulnerable.

Lincoln's survey showed that 48 per cent of the people not currently saving felt that their cash was needed to cover "day-to-day expenses" instead.

What's more, 23 per cent were using the money to cover their own debt repayments - whether through loans or cards.

Commenting on the report, Simon O'Connor, head of products and marketing at Lincoln Financial Group, said: "Clearly people's finances are stretched at the moment. Unfortunately, this can lead some people to push pension contributions to the bottom of the priority list.

"However, we would suggest people look beyond their short term financial situation and start to make plans for their retirement as early as possible.

Tags; Budgeting Advice, Retirement Money Problems,

Regional Debt Advice; Debt Advice Lincoln,

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