One in three 'maxed out on pension contributions'

Thursday, July 2 2009

More than a third of people are making the maximum contribution towards their pension that they can currently afford, it has been revealed.

Research from financial services provider Scottish Widows suggests that 36 per cent of people who are already saving cannot afford to increase the amount they put aside.

However, among those who are not currently making pension contributions, the majority (58 per cent) do not believe they have any money to put towards their retirement.

In the past 12 months, 21 per cent of over-50s have reduced the amount they contribute towards their pension compared with the previous year.

"Non-pensions savings has continued to rise, but total investments held have continued to fall," comments Scottish Widows head of pensions market development Ian Naismith.

The figures follow previous research from the financial services provider which found households' debt burdens were preventing 42 per cent of people from saving as much as they would like.