Pension payments decline as Brits rein in spending

 

Millions of Britons are risking their financial security in an attempt to recoup costs during the Credit Crunch, new research has found.

 

According to comparison website uSwitch.com, 42% of consumers have cancelled insurance policies or pension contributions to save money in the current economic downturn. 

 

Private health insurance and breakdown cover were the first indemnities to be sacrificed, while one in ten people have ceased payments into their pension fund.

 

However, a spokesperson for uSwitch.com has warned against taking impulsive cost-cutting measures.

 

‘The potential impact on you or your family finances if you get it wrong could be huge and long lasting, so it’s important to go into it with your eyes wide open. The key thing to consider before cancelling any policy is whether it still meets your needs.

‘You should then look at whether it is cost effective, whether the cover is being duplicated through another policy or a workplace benefit and, more importantly, what the implications are of getting rid of it.’

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