Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Cost of living squeeze hits pension contributions

by August 4, 2022
August 4, 2022
Cost of living squeeze hits pension contributions

More than one in ten adults have stopped contributing to their company pension or are planning to stop because their incomes have been squeezed by the cost of living crisis.

About 5 per cent of adults have ended contributions into their pension pots to save money as inflation hits a 40- year high of 9.4 per cent.

A further 6 per cent are thinking about pausing contributions and 9 per cent may consider doing so, according to an Opinium survey of 2,000 adults commissioned by Canada Life, the insurance and financial services group.

About eight in ten working adults had a pension in April 2020, up from fewer than five in ten in 2012 before the automatic enrolment scheme — which requires eligible employees to opt out rather than opt in to a pension — was introduced. The proportion of working adults with a pension rose until 2020, the first year to record stagnant levels of participation, figures from the Office for National Statistics show.

Modelling by Canada Life found that if a worker on £50,000 and 8 per cent pension contributions opted out of a company scheme for a year, it could, depending on their age, lead to a 4 per cent fall in the value of their final pension. Andrew Tully, technical director at Canada Life, said employees considering rejoining their company pensions should be aware they can typically only choose to start or stop contributions once a year.

“It’s understandable that people feeling the pinch are considering opting out,” he said. “Affording food and heating will take priority over saving. However, it’s important to remember to rejoin a scheme as their financial situation improves.”

The squeeze on household finances is expected only to worsen as the year goes on. The Bank of England expects that inflation will exceed 11 per cent in October, when winter energy bills are calculated. The Bank’s rate-setting committee meets today to decide whether to raise interest rates for a sixth consecutive time.

Read more:
Cost of living squeeze hits pension contributions

0
FacebookTwitterGoogle +Pinterest
previous post
Poundland to cut prices and open 25 new stores
next post
Why Is Enterprise SEO Essential for Businesses?

You may also like

Little Christmas cheer as port strikes drag on

October 3, 2022

Management team incentivisation and selling your business

June 5, 2024

Microsoft to Offer Teams Separately from Office Suite...

April 3, 2024

The Best High RTP Slots: Maximize Your Winning...

December 7, 2024

UK business confidence hits twelve-month low as Autumn...

October 21, 2024

The industries expected to thrive in 2024

December 18, 2023

HSBC faces £150m dilemma over office space as...

June 24, 2025

UK is hub for innovation, but business still...

December 5, 2023

MPs cast doubt over UK government’s readiness for...

April 26, 2024

Stopping Windows Condensation As An Alternative For Brampton...

February 24, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump touts administration’s progress on peace deals, says world leaders ‘respect our country again’

      June 27, 2025
    • Venezuelan opposition member details harrowing 400-day captivity at UN

      June 27, 2025
    • Anxious Republicans turn to Trump amid divisions over ‘big, beautiful bill’

      June 27, 2025
    • JD Vance poised to clinch victory for Trump’s landmark bill as GOP finalizes strategy

      June 27, 2025
    • Trump secures record-shattering $1.4B for political war chest, will be ‘dominant force’ for GOP in midterms

      June 27, 2025
    • Fibonacci Retracements: The Key to Identifying True Breakouts

      June 27, 2025

    Categories

    • Business (8,329)
    • Investing (2,081)
    • Politics (15,841)
    • Stocks (3,175)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved