No Result
View All Result
Benefits Expert
  • About
  • Advertise
  • Alerts
  • Events
  • Contact
  • NEWS
  • IN DEPTH
  • PROFILE
  • PENSIONS
  • GLOBAL REWARDS
  • FINANCIAL BENEFITS
  • HEALTH & WELLBEING
  • DIVERSITY & INCLUSION
  • PODCAST
No Result
View All Result
Benefits Expert
  • NEWS
  • IN DEPTH
  • PROFILE
  • PENSIONS
  • GLOBAL REWARDS
  • FINANCIAL BENEFITS
  • HEALTH & WELLBEING
  • DIVERSITY & INCLUSION
  • PODCAST

Two-year workplace pensions pause could cost employees £27,000

by Benefits Expert
07/08/2023
retirement, ethnic minorities, retirement support
Share on LinkedInShare on Twitter

RELATED POSTS

Retirement planning, yellow sign and beach

Millions of over-60s feel unprepared for retirement, research shows

Gender pay gap, pension, DEI, inequality

EHRC issues warning as big brands miss pay gap deadline

A two-year pause in workplace pensions contributions could cost savers £27,000 in total retirement funds, SEI has warned.

Figures published by the Financial Conduct Authority (FCA) show an increase in people cancelling their DC pension contributions.

SEI analysed a typical 35-year-old saver and found that pausing contributions for just two years, for reasons like managing higher mortgage rates on a two-year fix, could cost this saver an estimated £27,000 in total retirement funds. The impact grows even greater with longer pauses.

The financial services company suggests looking into different solutions to solve this problem. It recommends analysing lower contribution levels as opposed to completely stopping contributions. 

SEI says it is important to keep in mind that not every pension provider may provide possibilities for lower contributions. It advises consumers to talk to employers or providers about the potential of lowering contributions. Long-term retirement savings can be significantly impacted by adopting a deliberate strategy and taking into account actual contribution needs.

The firm’s head of master trust and DC director David Snowdon said: “While we have yet to see any real evidence of this within the SEI Master Trust, the FCA data highlights a concerning increase in the number of employed people in the UK pausing their pension contributions, at the same time taking a break from the tax benefits and employer matching that accompanies those contributions.

“Times are hard, and having more money to take home at the end of the month can make a big difference to personal finances, but the financial forfeit for pausing contributions can be much larger.

“I believe employees are unaware of the impact a contribution break could have on the size of their pension pot at retirement. Employees who stop paying into their pension altogether may well regain their employee contribution, but they’ll pass up on free money from their employer in the form of tax-free contribution matching.

“To this end, some employees may have the option to reduce their monthly contributions, as opposed to stopping altogether – this depends on the way their pension plan has been structured. More should be done to raise awareness of this.”

Next Post
British Airways staff secure 13.1% pay rise

British Airways staff secure 13.1% pay rise

Lowell Financial offers employees 20% childcare discount

Lowell Financial offers employees 20% childcare discount

SUMMIT

BENEFITS UNBOXED PODCAST

Benefits Unboxed
Benefits Unboxed

The podcast from Benefits Expert, the title for HR, reward and benefits professionals.

Seasoned professionals examine the challenges and innovations in today’s employee benefits, reward and HR sector. Every episode, they will unbox a key issue and unpack what it really means for employers and how they can tackle it.

The regulars are Claire Churchard, editor of Benefits Expert; Carole Goldsmith, HR director at the Royal Horticultural Society, and Steve Herbert, consultant and rewards & benefits veteran.

Benefits Unboxed – Hybrid work: reality versus rhetoric
byBenefits Expert from Definite Article Media

Return-to-office mandates are a topic that’s generating plenty of heat in the media, but how closely do the headlines match workplace reality? 

In this episode, one of a three-part series of 10-minute podcasts, hosts Claire Churchard and Steve Herbert discuss data that shows remote or home working is on the rise.

We look at what this means for HR, from balancing employee flexibility with business needs, to ensuring benefits packages remain fair and accessible. We discuss the pinch points, and the opportunities, in building the new normal of work.

Benefits Unboxed – Hybrid work: reality versus rhetoric
Benefits Unboxed – Hybrid work: reality versus rhetoric
31/08/2025
Benefits Expert from Definite Article Media
Search Results placeholder

GUIDE TO PROTECTING YOUR WORKFORCE



REQUEST A FREE COPY

OPINION

Neil Mullarkey, communications, expert, author, improv

Why marketing will define tomorrow’s reward leaders

Steve Herbert, consultant, ambassador, reward, benefits, HR strategy

Steve Herbert: The art of the deal?

Lorna Ferrie, legal and compliance director, Mauve Group

Lorna Ferrie: hybrid is not a loophole, remote teams can’t ignore the pay transparency push

Holly Coe, Innecto Reward Consulting

Holly Coe: friendship is an overlooked superpower when tackling workplace absenteeism

SUBSCRIBE

Benefits Expert

© 2024 Definite Article Limited. Design by 71 Media Limited.

  • About
  • Advertise
  • Privacy Policy
  • Terms & Conditions
  • Contact

Follow Benefits Expert

No Result
View All Result
  • News
  • In depth
  • Profile
  • Pensions
  • Global rewards
  • Financial benefits
  • Health & wellbeing
  • Diversity & Inclusion