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One in 10 pension savers will stop or reduce pension contributions

One in 10 pension savers will stop or reduce their contributions over the next 12 months due to the current market volatility.

Research from private client portfolio manager Brewin Dolphin found that those aged 25 to 34 are most likely to take a break or reduce their pension contributions.

Of those surveyed, 5 per cent said they would stop contributions altogether, 2 per cent said they would pause their contributions while 3 per cent said they would reduce their contributions.

Brewin Dolphin says it is alarming that so many people intend to make changes to their pension contributions within the next 12 months.

Brewin Dolphin director of corporate affairs Charlotte Black says: “Given tighter credit conditions it seems likely that pension payment breaks will become increasingly prevalent as the immediate pressures of servicing mortgages and dealing with credit card debts take their toll.

“This will result in a further depletion of pension pots that have already suffered by the Government’s decision in 1997 to remove tax credits on dividends in pension funds. Even the shortest payment break could have serious consequences for the income a pensioner has in retirement.”

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