U.K. Workers Cutting Back on Retirement Savings

December 23, 2008 (PLANSPONSOR.com) - Independent research conducted by Prudential reveals that 18% of U.K. workers say they have reduced the amount they save for an occupational or private pension as a result of the credit crunch.

According to a press release, 36% of those reducing the amount they save for retirement do not anticipate they will be able to increase their savings in the future.

The findings also reveal that U.K. workers are on average saving just £1,552.20 a year into pension funds, with women saving even less at around £899.40 a year. In addition, more than half of all U.K. workers (55%) do not contribute to a company pension or private pension, relying completely on the State pension or other savings.

The research shows voluntary pension contributions to private and company schemes have plummeted by 53% in just 18 months. A survey in March 2008 indicated U.K. adults cut monthly pension savings from an average £279.38 a month in March 2007 to just £144.57 a month. A survey in September 2008 showed an additional cut in contributions to an average £129.35 a month.

The September 2008 independent online survey was conducted by Research Plus on behalf of Prudential and received a total of 1000 responses from U.K.. adults over age 18.