‘Seek advice’ before making pension reduction decision

It is important to seek advice before making a decision regarding reducing contributions to pension plans in order to improve debt management during the current financial crisis, one independent advisory firm has warned.

Senior investments advisor at Bestinvest Adrian Lowocks has urged those considering making such a move to talk to their bank or a financial advisor in order to establish the best money management tactics.

“If you are doing it [making cutbacks] because you have got more immediate and budgeting or financial concerns then it is very important to speak to the bank about that,” he explained.

Mr Lowocks went on to state that doing so would provide “good ideas”, allowing those worrying about their finances to “take control of your situation”.

According to recent research by uSwitch.com, 86 per cent of the 42 per cent of Britons who have stopped insurance or pension contributions save up to £50 a month.

By Tom Musk