Seek pensions advice before cutting back on contributions, says expert
Advice should be sought before scaling back pension contributions, according to one expert.
People thinking of cutting back on their pension contributions during the current economic climate should seek pensions advice before doing so, it has been claimed.According to Bestinvest, savers should speak to a professional about why they are taking such action and discuss their motivations - for example they may be looking to reduce their exposure to volatile markets or they may simply be struggling financially.
"If you are doing it because you have got more immediate budgeting or financial concerns then it is very important to speak to the bank about that and perhaps speak to a financial advisor on how best you can actually manage your money," said spokesman Adrian Lowcocks.
Research by uSwitch.com shows that 12 per cent of Brits have stopped making pension contributions in a bid to save money and ease the pressure on their household budgets.
However, the 2008 Cost of Retirement report from Life Trust Insurance shows that as a result of increasing life expectancy and rising inflation, the cost of retirement for the average person could reach £1.3 million, making saving even more important.
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