Thursday 30th of July 2009
Some pension holders have had to stop contributing towards their retirement because of the economic downturn, new research has revealed, although a debt management plan could help worried Britons shore up extra cash.
The survey by Prudential found that although many individuals have been saving for when they leave the workforce, 16 per cent stated that over the past five years they have had to stop making contributions or reduce them.
One reason why pension contributions could be halted is because of other financial commitments, such as unsecured loans.
A debt management plan could, however, reduce the interest on these payments, which may leave a little cash over to put in a pension pot.
"It’s worrying that many people who have been working for years and saving for retirement seem to have given up hope and stopped paying into their pension," asserted Martyn Bogira, Prudential’s director of defined contribution solutions.
Being in debt can be scary and some individuals may not realise what options are available to them. A debt management plan can also extend the repayment periods of personal loans.
Cash-concerned Britons may want to sort out their debt management now, after there have been reports that council tax could rise next year by £50.
By Mark Waterman
