1 in 10 workers stop pension contributions
2nd June 2020
One in ten workers have stopped or reduced their pension contributions as a result of the coronavirus, according to a report.
Scottish Widows polled 2,251 workers during the COVID-19 crisis and found that short-term financial pressures were affecting long-term saving goals.
Around one in five (19%) respondents have experienced a fall in income since lockdown measures were imposed in the UK on 23 March 2020.
Taking a closer look, 43% of self-employed workers saw a drop in their income, compared to 16% of employees.
Some 24% worry about paying for essentials like food and energy, while 20% have concerns about paying their rent or mortgage.
To ease the pressure on their finances, 10% of workers paused or stopped paying into their pension pots.
The percentage of self-employed respondents who have stopped making pension contributions was higher than the average, at 19%.
Pete Glancy, head of policy at Scottish Widows, said:
"COVID-19 has revealed a painful lack of financial resilience in the UK, leaving millions of people exposed with little or no safety net to fall back on.
"As the full impact of this crisis becomes clearer, more people may feel forced to pay for today's essentials with tomorrow's savings.
"However, this will only prolong the economic pain of coronavirus and could result in more people facing poverty in retirement."
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