People are being urged to not pause their pension contributions as cost of living pressures may leave them thousands of pounds worse off in retirement.
According to calculations, 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. Pension provider Standard Standard Life calculated that if the pension payments are paused at the age of 35 for just one year, they could end up with just over £444,000 by the age of 68 - £13,000 less.
Furthermore, if someone pauses for two years they could be £25,000 worse off and if they pause for three years it could total £38,000 worse off. Standard Life surveyed 2,5000 customers and discovered that if they had cut down on expenses, 15 per cent would put less money into savings while 6 per cent would reduce their pension contributions.
