IN THE BACK
Taking five years out from contributing to your pension will have a far more damaging impact on your retirement and may force you to accept a significantly lower standard of living , or even mean you have to work into your 70s
for a year would leave them with a final pot of £ 371,318 instead of £ 387,000 , meaning a loss of £ 15,682 compared with contributions saved of just £ 4,000 . But it gets worse , because the employer ( if this is an auto-enrolment scheme ) would have paid at least 3 of the 8 % ( or £ 1,500 ), while tax of at least 20 % would be due on the excess cash in the employee ’ s pay packet . So , to receive £ 2,000 of net cash by pausing contributions for a year , you ’ ve lost £ 15,682 from your pension pot . But if you really needed that £ 2,000 to keep warm and eat , then no
/ 64 / trustnet . com