Pensions warning to mortgage holders

15 November 2007
People coming to the end of their fixed-rate mortgages may pay less attention to their retirement saving in order to meet the higher costs of borrowing, it has been claimed.

According to Richard Sheppard, head of pensions for AWD Chase de Vere, said that often people pay less attention to their long-term saving as dealing mortgage repayments or financing new cars take priority.

Mr Sheppard said it was of "real concern" that two million households are coming to the end of their fixed-rate mortgage deals over the next six months.

"I think those individuals are going to be the ones that will be either reducing or suspending pension contributions, to fund their increased mortgage payments," he remarked.

Recent research by Defaqto revealed that a third of people surveyed said that they were not saving for their retirement, while seven in ten respondents admitted they would be relying on their state pension.

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