People who pause their workplace pension contributions for just a year due to cost-of-living pressures may end up thousands of pounds worse off in retirement than if they had continued paying in, calculations suggest.
Someone who started working with a salary of £25,000 per year and paid the minimum contributions from the age of 22 could end up with nearly £457,000 in retirement, pensions provider Standard Life calculated.
But if they paused at the age of 35 for just one year, they could end up with just over £444,000 by the age of 68 – nearly £13,000 less than if they had continued to pay in.
