Recession hits personal pension contributions

Recession hits personal pension contributions

Figures published by HM Revenue & Customs (HMRC) revealed the recession had a severe impact on personal pension contributions.

According to figures, workers put £1 billion less into their personal pensions last year - the first fall since the mid 1990s and was primarily due to lower employee contributions.

Higher unemployment during the period and the squeeze on personal finances was the main reason for the fall.

However, employer contributions grew in the same period from £7.42 billion to £7.71 billion.

Commenting on the figures, Laith Khalaf of financial advisers Hargreaves Lansdown, said: “A collapse in pension saving of this magnitude will inevitably have repercussions further down the line unless savers make good their missed contributions.

“As things stand individuals are understandably reluctant to put money away for their retirement when their immediate future looks uncertain,” he added.

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