Its adviser survey shows 29 per cent believe existing clients will cut the amount they invest in a pension this year due to stock market volatility and diverting spare money to cover increased living costs.
The average predicted reduction in pension investment is 21 per cent.
MetLife strategic development and marketing director Dominic Grinstead says: “Stock market volatility has been one of the biggest concerns in the past year with the impact of the credit crunch beginning in 2007 adding to the pressure on people’s finances.”
“It is worrying that nearly one in three IFAs is expecting a drop in pension investment by existing clients this year and the predicted reductions are significant”.
“Market volatility looks set to continue throughout 2008 and this appears to be making some pension savers reconsider their decision to invest. However if they reduce investment in pensions because of stock market volatility they will see retirement income fall.”