More than a third of British adults have put their savings towards a pension on hold, according to recent research.
Conducted by Prudential, the survey found that 35 per cent of Brits who are yet to retire have stopped paying into their pension pots. Financial strains account for the overwhelming majority who have been forced to stop.
Indeed, 33 per cent have put payments on hold because they are out of work, while 27 per cent claim that they can no longer afford the contributions.
Of those who have stopped, 43 per cent do not have plans to start again, despite the long-term impact the move will have on their retirement income. According to Prudential's calculations, missing a year of gross contributions of £2,400 could see a final pension fund reduced by as much as £7,000.
Vince Smith-Hughes, head of business development at the group, urged people to get into a routine with savings as soon as possible and warned that abandoning pension pot savings “should be a last resort when times are tough”.
He added: “Tightening your belt when times are hard is sometimes necessary, and putting pension contributions on hold might seem an easy way to save money; however, neglecting pensions today means throwing money away tomorrow, as savers will miss out on perks, such as tax relief and employer contributions.”
