Workers `neglecting pension savings`

5 August 2009

More than one in ten workers (16%) who have a pension say they have reduced the amount they save or have stopped saving altogether, according to new research.

Financial services company Prudential, who compiled the report, claimed that the number of people failing to save adequately for their future could lead to a rise in `pensioner poverty`.

It added that the number of people coming to rely on state pensions and their own savings would rise by 27% over the next ten years, compared with 22% of those retiring this year.

A debt expert for Think Money said: "The current financial climate has made saving money difficult for many people, but pensions are particularly important and should be considered a priority, especially for people approaching retirement. Without adequate savings, there is a much higher risk of debt problems in later life.

"Some people may be prevented from saving into a pension by existing debts. If that`s the case, they should speak to a professional debt adviser, who can help them find a way to clear those debts and get into a position to start saving again."

Tags: pension, pensioners, savings, debt, Prudential

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