Employees paying into either company pension schemes or their own private pension are putting in GBP134 less each month than last year. This may appear to be good thing to do for some people but pensions work best when they have money to grow over a long period of time, so saving money each month now can cost much more at retirement when the pension fund is a lot less than it could have been. So said a Prudential spokesman.
Another key factor affecting pension contributions and retirement planning is that over half the people spoken to by the Prudential who are in employment do not make any contributions to a company pension scheme.