Some 16% of workers paying into a pension have reduced or completely halted contributions to their scheme in the last five years, Prudential research reveals.The study said the decision to stop contributions could lead to an increase in future pensioner poverty.
The research showed the number of people planning to rely mainly on the state pension to fund their retirement is set to rise over the next 10 years to 27% - compared with 22% of those retiring this year.
Prudential director of defined contribution solutions Martyn Bogira said: "It's worrying that many people who have been working for years and saving for retirement seem to have given up hope and stopped paying into their pension. This is the last thing they should be doing. "It's also really worrying that many people either planning to retire imminently or within the next decade still believe the state will support them when we know that, for many people, this just won't be the case."
The research also found 42% who said they planned to retire this year will have the majority of their pension savings in a final salary scheme, while the figure falls to 35% for those due to retire over the next 10 years.
In addition, Prudential said a worker who puts off paying into a pension until they are 35 could end up with a pension pot at age 65 worth nearly £40,000 less than if they had started paying in when they were 30.
It added delaying 10 years could double the amount needed to save, which means these people may have to save more later in their working lives, if affordable, or get much less to live on when they retire
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