A third of workers are reducing or stopping pension contributions

This could mean losing out on £4,092 savings for those earning £35,000

Isabel Baxter
clock • 1 min read

In the past two years, a third (33%) of all workers have considered reducing or stopping their pension contributions, according to Royal London.

This has risen to 49% of workers aged 18-34. The findings carried out with over 6,000 UK adults between 1 and 8 August 2023, found that one in ten (12%) pension savers are reducing the amount they pay into workplace savings. The cost of living (55%) and, specifically, rising mortgage costs (15%) are two of the main reasons. Royal London said that stopping pension savings may increase take home pay by £1,404 per year but means losing out on £4,092 pension savings a year for workers earning £35,000. The analysis also noted that pension contributions attract tax relief on the money th...

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