One in 12 to stop pension contributions
David Woods, 17 November 2008
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One and a half million (one in 12) pension holders are on the brink of halting pension contributions.
According to research from AXA, if these 1.5 million defined-contribution scheme members stop contributing for two years it will cost pension funds £34.97 billion.
The pensions provider has calculated a 35-year-old man could lose £28,700 from his retirement fund by not contributing over two years.
Steve Folkard, head of pensions and savings policy at AXA, said: "Taking a pension break should be a last resort because of the long-term repercussions.
"Planning for retirement isn't just something a 50-year-old should do. These calculations prove even people in their 20s will feel the effects of cutting their pension contributions. Final-salary pensions aren't just available to many people now and we all have to realise quality of life in retirement is affected by actions now."
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