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Brits ditch pension payments

15/10/2008

Brits are cutting back on essential financial products including their pension, according to research.

Comparison site uSwitch.com found 42 per cent of Brits have cancelled insurance policies or pension contributions to save money, with breakdown cover and private health insurance the first to go.

Potentially just over 19 million people have reduced their financial security, or ditched it entirely, in a bid to claw back some cash, uSwitch said.

However, with one in ten giving up pension contributions to save cash, uSwitch warned that Brits may end up paying for their cost-cutting in later life.

Ashton Berkhauer, insurance expert at uSwitch.com, said: "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."

Of those who have scrapped policies to cut costs, 15 per cent axed their car breakdown cover and 15 per cent dropped private health and dental insurance, but only six per cent decided to save money by ditching contents cover.