Is the credit crunch leading to pension pinch?

August, 08, 2008

The ongoing effects of the credit crunch are forcing people to cut back on their pension savings, according to Prudential.

Julie Mulvanny, head of business development for individual pensions at the financial services provider, states that people are growing increasingly concerned over the costs of day-to-day living.

"Property equity has fallen, the market's down ... and the actual cost of living has gone up. People are aware of this, I think it's a major issue for a lot of people," she adds.

Ms Mulvanny continues by noting that many people view their pension as something that is a long way off, especially if they are struggling with other outgoings such as mortgage payments and bills.

"I think pensions are an easy one to stop making your payments to," the Prudential representative concludes.

Figures obtained from the firm suggest that 37 per cent of working-age adults are losing sleep due to concerns about saving for retirement.