Britons cancel insurance & pension contributions to save money

22 October 2008

42% of Britons have cancelled insurance policies or pension contributions in a bid to save money, according to a new report from uSwitch.

Breakdown cover and private health / dental cover are at the top of the ‘cancellation list’, each cancelled by 15% of respondents who had cancelled something. The list also includes life insurance policies, pension contributions, mortgage payment protection and critical illness cover.

Although 86 percent claim to have saved ‘up to £50 a month’, it’s important to recognise the potential consequences of cancelling any policy, says a spokesperson for debt management company Gregory Pennington.

“Any short-term saving must be seen in the correct context,” said the spokesperson. “£50 a month may sound significant, but the right insurance policy can pay for itself many times over if, for example, someone’s car breaks down or they become ill – and things like pension contributions are an important part of preparing for later life.”

“It’s worrying to see that so many people feel they have to do this: should their circumstances change for the worse, there’s a chance they’ll end up much worse off financially than they would have been if they’d kept the policy running. We would strongly urge people to consider other ways of cutting back on expenses.”

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

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Gregory Pennington are founder members of DEMSA (Debt Managers Standards Association).

DEMSA are the first trade body within the finance industry to successfully secure approval for its code of practice under the OFT Consumer Codes Approval Scheme (CCAS).