Consumers who change their car every five years rather than every two can increase their pension fund by £240,000, according to Fidelity International.
The financial services provider argues that if people do hold off making a car purchase for two years, they can also retire earlier.
Simon Fraser, president of Fidelity International UK and Europe, states: "Just by deferring a car purchase by a year or two, people can make a substantial improvement to their retirement prospects and, potentially, stop full-time work far earlier than those who embrace the 'spend now, save later' ethic."
Mr Fraser adds that the message Fidelity International wants to send is not that people should not spend what they earn, but that there should be a balance between consumption and adding to their savings for the future.
His comments follow research from the firm that reveals that if people invest the average car finance repayment, estimated to be worth £352 a month over three years, for 30 years they could improve their pension fund by around £238,674.
Consumers who are thinking out car finance for a new vehicle can see the motor trade's latest offerings at the 2006 British International Motor Show which is set to begin on Thursday this week at the ExCel exhibition centre in London.
Keep with your current car and boost your pension
Pensions Quote Line
0845 108 0505
Keep with your current car and boost your pension
Tue, 18 Jul 2006
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Pensions.co.uk is part of a large network of financial sites created to help advise you on life events, such as buying a house, Mortgages.co.uk; insuring your car - CarInsurances.co.uk; your life - LifeInsurance.co.uk; and your home - HomeInsurance.co.uk.
1998 - 2009 UK Pensions - Planning before, at the onset and during retirement.
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