Belt-tightening now will cause more problems later
November 18, 2008
It seems that more and more people are worrying about their financial state as we are going the tough times of an economic downturn. According to Axa, about 1.5million pension scheme members are thinking about freezing their contributions.
The survey, done by 2034 scheme members showed that more than 8% felt like that would have no choice other than to halt their payments over the next two years. The survey also showed that it was more likely to be members between the ages of 35-44 who were most likely to stop saving so they could clear debts and be prepared for the increased cost of living.
The pensions firm has warned people that by taking a gap in contributions now could cause a severe reduction to quality of life a retirement.
The head of pensions and savings, Steve Folkard has said:
“Taking a pension break should be a last resort, because of the long-term repercussions. If you put in £300 a month less for two years, you will have a pension pot that is tens of thousands of pounds short when you retire.”
It is tempting to use the money you would normally contribute to your pension on other things at this moment in time, but it’s important that you think about the future too.
Things to consider:Click here for Wonder Bingo Info
Comments
Got something to say?