Pension contributions fall by £1bn

Of that £1bn, a decrease in individual's contributions accounted for £940m, whilst employer contributions remained roughly the same as 2008/09 levels. The average contribution per person per year fell from £945 to £886. There were 430,000 fewer investors into personal pensions in 2009/10 than in the year before. "Pension contributions are no doubt a tempting cost to cut when times are tough," says Laith Khalaf, pensions analyst at Hargreaves Lansdown. "But if they are never made good this is a problem shelved rather than a problem solved. "This decline in pension saving highligh...