Pension saving drops by £1bn

THE amount of money contributed to pension funds fell by more than £1 billion over the past year, according to figures published yesterday.

Just under 18bn was contributed to private pensions during the 2009-10 financial year, down from 19.3bn in the previous 12 months, HM Revenue & Customs said.

The fall was driven by a 940?million drop in the amount individuals contributed to schemes, with the amount paid in by companies remaining broadly unchanged.

About 430,000 people stopped saving for their retirement through a private pension during the year.