View more on these topics

50% drop in pensions contributions in a year

UK adults have cut their voluntary pension contributions in half over the past year according to Prudential.

The Prudential 2008 Retirement Savings Report found people with a company or private pension are contributing around £134 a month less than in 2007. Non-retired UK adults are contributing an average of £144.57 a month to their pension scheme, which is equivalent to £1,734 a year. But last year the savings report found the average monthly contribution was £279.38 a month.

The report also revealed that 55 per cent of non-retired UK adults are not contributing at all to a private or company pension scheme – 63 per cent of these are women and 44 per cent are men. Despite this those paying into such pension schemes expect to draw an average annual pension of £22,504 a year, with men expecting to be able to draw an annual pension of £26,355.

Prudential managing director retail life & pensions Gary Shaughnessy says: “It is deeply concerning to see that the amount UK adults are personally paying into pension schemes has fallen so dramatically in the past year.

“With rising prices and a squeeze on savings, reducing pension contributions may look like an attractive short-term option, but the reality is that continuing to save as early as possible is vital if people are to build a pension pot large enough to maintain their lifestyle in retirement.”


Zurich International Life boosts fund range

Zurich International Life has added 38 more funds, including 130/30 and currency funds, to its investment platform.The three 130/30 funds include the Invesco Pan-European 130/30 equity fund and DWS Investments’ emerging markets equities 130/30 and top 50 Asia 130/30 funds.Zurich says the currency funds, which come from Morgan Stanley, allow investors to allocate currency as […]

Pension Corporation hits back at Unite accusations of raids on schemes

Pension Corporation has hit back at comments from Unite after it accused the pension buy-out firm of raiding pension schemes.Unite said yesterday that it was calling on the Government to legislate to protect pension schemes from “raids by private equity style companies”.But Pension Corporation says it does not raid pension schemes but provides sponsorship, insurance […]

Friends Provident rejects JC Flowers bid

Friends Provident has rejected a £3.5bn offer from private equity group JC Flowers. JC Flowers bid last Thursday to buy the FTSE 100 listed company for 150p a share, but the board of Friends Provident says it has declined the bid.The proposed price is well below the 175p JC Flowers was said to be considering […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm