According to research from insurance company LV= a worrying decline in pensions contributions by UK savers is starting to emerge.
New statistics show that nearly 20% of people nearing their retirement age have reduced their saving by an average of £342 a month, the equivalent of £11billion in a year for the whole country.
The finding, published in the LV= annual State of Retirement Report also found that workers in the private sector were increasingly saving less, whilst public sector workers were also saving less, not as much as private workers, because of the uncertainty surrounding their pensions.
Worker with private pensions cut their contributions by an average of £434 a month, a massive difference.
Ray Chinn, LV=’s head of pensions said, “The coalition government has proposed and made a significant amount of changes to our pensions system which is yet to register with many people in or nearing retirement.”
The trend of saving less seems to be getting worse. LV=s first review in 2008 found people saving around £70 less and this figure had increased each year they have run the survey.