Avoid Pension Payment Breaks
Published / Last Updated on 24/04/2008
Avoid Pension Payment Breaks
According to Brewin Dolphin, scheme members are putting their long-term financial future at risk by taking pension payment breaks, saying that the credit crunch was affecting how much people are paying into their funds, as they sought “breaks” from their pension commitments to ease other financial burdens such as mortgages.
A study by the firm revealed around 2.4 million people planned to stop, reduce or pause their pension contributions during the next 12 months. With women more likely to stop contributions than men and payment breaks were more common among investors under 35.
Our view
This is simple fact. If you pay less, you get less. We all need to plan our retirement strategy to ensure a happy retirement.
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