Staying in a workplace pension is an easy way to save for your retirement, especially as your employer, in most cases, must contribute to it. But if you’re dealing with unmanageable debt, it might make sense to stop your contributions for now.
You can always re-join your employer’s workplace pension scheme later when you’ve got things under control. If your debts are a problem, read our guide Automatic enrolment if you have debts.
Remember, if you stop or reduce your pension contribution, you might be missing out on valuable retirement benefits. These include:
contributions your employer makes into your pension pot, so opting out is like turning down pay
tax relief (money that would have gone to the government as tax that goes into your pension pot instead)
benefits that your scheme might pay if you fall ill and are unable to continue working before reaching your retirement date, and
To find out what benefits you might lose, check the booklet about your pension scheme or ask your employer or the pension provider for a copy if you don’t have it.
Need more information on pensions?
Call us free on 0800 011 3797 or use our webchatOpens in a new window. One of our pension specialists will be happy to answer your questions.
Opening times: Monday to Friday, 9am to 5pm (helpline), 9am to 6pm (webchat). Closed on bank holidays.