By Marcus Leach
According to research by Prudential a large number of people yet to retire have stopped paying pension contributions.
The research results show that 33% of those who have put pension payments on hold have done so because they are out of work, while 27% say that they can no longer afford the contributions as the current economic situation takes its toll.
43% of respondents who said they had stopped making payments also said that they have no plans to start again despite the long-term impact it will have on their retirement income.
"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," Vince Smith-Hughes, head of business development at Prudential,said.
"Abandoning your pension pot really should be a last resort when times are tough.
"By getting into the routine of saving into a pension as early as possible, savers will be able to ensure the comfortable retirement that they deserve."
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