Research from Think Money, based on ONS figures, has found an ‘accelerated’ fall in people paying into occupational pension schemes, causing concerns that some could end up facing a cash-strapped retirement.
As recently as 2008, 9.0 million people were making contributions to an occupational pension scheme – but two years down the line in 2010, this number had fallen to 8.3 million.
Although this drop in people saving for their retirement has been ongoing for decades, it seems that recent years have seen this trend gather pace.
A spokesperson for the financial solutions company commented: “Clearly, rising unemployment and falling levels of disposable income are forcing households across the country to rein in their spending, but we would advise people to think very carefully before deciding how they’ll do that.”
Although many households are currently feeling the pinch, there are some steps people could take to help them save in the long term.
From planning a strict monthly budget, to making cutbacks on spending, people who are financially comfortable could take measures to maximise the cash they can put into a pension.
However, for people struggling to keep on top of their finances, getting guidance from a debt management company could help them to clear their debts – and help them to realistically plan for the future sooner rather than later.