Credit crunch 'takes a chunk out of pensions'

By Tom Farley, Thu 7 Aug 2008 - Published in Pensions

People who are struggling to manage financially in the current economic climate are failing to put enough aside for old age, according to Prudential.

Head of business development for individual pensions Julie Mulvanny said adults are reducing the amount they pay into their pensions in order to meet day-to-day expenses.

She warned those relying on their homes to provide a good income during retirement could be making a mistake.

Ms Mulvanny pointed out only "ten per cent of people have houses with enough value to provide a decent amount of income through things like equity release and downsizing".

A study by Prudential has found about 37 per cent of Brits are worried about their lack of savings to see them through retirement.

Some 36 per cent were concerned they were not contributing enough to a pension fund to maintain their current standard of living while 30 per cent admitted they were not saving anything for old age.

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