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

SafeLane Global Welcomes New CEO 

October 31, 2023

Wireless Logic valued at £3.5bn as founder sells...

May 16, 2025

Starmer sets out new AI action plan to...

January 13, 2025

ONS to spend millions on temp workers to...

January 23, 2025

British Business Bank Start Up Loans programme unveils...

May 24, 2023

What Are The Effective Skills For Running An...

September 23, 2022

How to Win Friends and Influence People using...

August 15, 2022

Online Casinos: Terms You Need to Know

December 7, 2024

A Deep Dive into Omnisend vs. Klaviyo: Which...

January 7, 2025

Safety check: 5 reasons to focus on duty...

September 22, 2022

    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 ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • 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