One-fifth of people who regularly pay into a pension scheme are likely to stop doing so during the next two years as they attempt to make ends meet.

According to a poll by Axa, half of all customers are likely to reduce the amount they pay in to cope with recent increases in the cost of living.

Those aged between 35 and 44 were the most likely to be cutting back, the survey found.

Axa is warning that taking a contribution holiday could leave people substantially worse off when they eventually come to retire.

"Taking a pension break should be a last resort because of the long-term repercussions," said Steve Folkard, head of pensions and savings policy.

"If you put £300 a month less into your pension for two years you will have a pension pot that is tens of thousands of pounds short when you retire."