More than a third have stopped putting money in pension pot

As much as 35% of pension scheme members have put pension contributions on hold as they can no longer afford it, research from Prudential warns

An increasing number of British adults are abandoning their pension pots, according to insurer Prudential, as they can no longer meet the expense of contributions.

The study revealed that 33% of those who have put pension payments on hold have done so because they are out of work, while 27% say that they can quite simply no longer afford to. More than two-fifths of those who have stopped paying into their pensions do not plan to start again, despite the long-term impact it will have on their retirement income, the report said.

According to Prudential irregular contributions could wipe thousands of the value of savers' pensions. The insurer calculated that a saver who misses a year of gross contributions of £2,400 could see their final pension fund reduced by £7,000.

Head of business development at Prudential Vince Smith-Hughes said, "Putting pension contributions on hold might seem an easy way to save money; however, neglecting pensions today means throwing money away tomorrow, as savers will miss out on perks, such as tax relief and employer contributions." "Abandoning your pension pot really should be a last resort when times are tough."