Platforms & Pensions
We all agree that not contributing to your pension is a bad idea and not to be encouraged , but dying of cold in your mid- 30s is even worse
continue to contribute as possible , because that ’ s how it will make the most money . Is it scaring people into keeping their pensions going for good reason , or is the whole campaign self-serving ? I thought it would be useful to look at the effects of pausing your pension to see what damage it could do to your retirement planning in the long run , allowing you to make an informed decision on whether to make sacrifices elsewhere or to pull the plug .
We all agree that not contributing to your pension is a bad idea and not to be encouraged , but dying of cold in your mid-30s is even worse .
The trade-off According to Canada Life , opting out of a company pension for just one year could reduce the value of your final pot by 4 %, all else being equal . This is based on someone aged 40 who plans to retire at 67 and earns £ 50,000 a year , contributing 8 % to their pension . Pausing contributions
Issue 87 - September 2022 / 63 /