A quarter of savers stopped or cut their pensions during the Covid-19 crisis and are considering doing so, new research shows.
Men and younger workers are more likely than women and older workers to avoid saving on pensions to make ends meet in response to the turmoil in work and personal finances caused by the pandemic, the study showed.
Hargreaves Lansdown’s findings echo a separate study that found that many people cut or cut their posts because they needed money for basic, cut or taken away.
According to a recent survey of 2,000 adults in September, around 14% of people have cut their posts and 11% have cut their posts completely, while 8% could do so in the future.
This trend can have a serious impact on people’s retirement prospects because they own smaller vessels. However, automatic registration is associated with failed protection.
Employers must re-enroll employees who leave the company every three years unless they wish to remain.
However, employers do this on a schedule, usually on a permanent basis, starting with the introduction of automatic registration the first time, not when the employee has left the company.
Sarah Coles, a personal finance analyst at Hargreaves Lansdown, says younger people can stop contributing sooner as their retirement age seems farther away, making it easy to cut costs.
However, it does show that the money you bet on in your teens is the hardest for you – because the combined growth raises the pot more over a longer period of time – resulting in higher than expected prices. .
Coles adds that if you cut or stop paying your pension, the effect increases because you lose tax breaks from the government and receive money from your employer.
But he admits that if you are currently earning less, have cut back on luxuries and spent spending to minimize the cost of basic necessities, and are still in trouble, you may have to cut your retirement contributions.
“The good news is that the way automatic recording works has to keep payment breaks temporarily so as not to become a big gap,” Coles said.
“If you give up your retirement at work, you’ll automatically be rehired within three years. Even if you can’t start paying yourself, you’re more than likely going to do the right thing inadvertently.”
Coles, meanwhile, said that some would see their retirement backdrop of declining in value due to the sharp downturn in the market at the start of the Covid-19 crisis, but some were ahead of the start of the year depending on where they invested.
“Most pensions aren’t just invested in stocks.” Most will have balance sheets of various assets, so overall pension funds haven’t come down that far and have made a significant recovery, “he said.
“According to Moneyfacts, the average pension fund at the end of June fell only 4.4% since the beginning of the year.
“It’s good to check where your retirement is invested and how it is performing, not just to see how it is performing, but to make sure it reflects your goals.
“If you have a retirement at work and you’re not sure how to do it, talk to your HR department and ask them to send you the details.”