Analysis3 has revealed that stopping or reducing pension contributions, even for a relatively short time such as a year, can have a signifi cant impact on your fi nal pension pot, with savers potentially being thousands of pounds less well off in retirement.
Choosing how to cut back
Almost all (93%) of those who responded to the analysts’ survey said they are feeling the impact of increasing costs and infl ation. A further 77% expect to have to make cutbacks on saving or spending. However, an encouragingly low fi gure of 6% said they planned to reduce their pension contributions.
Thinking of the long term
Whilst it might seem tempting to give up or pause your pension contributions, it’s important to consider the impact any breaks in contributions would have on your retirement pot.Keeping your long-term plans in mind and maintaining your savings habit wherever possible will help to keep your retirement planning on track. 3 Standard Life, 2022