Pension Blog Series: Episode 2 – Reversing damage to long-term retirement plans caused by reducing or stopping pension premiums

In Episode 2 of our new Pensions blog series, we look at what you can do to reverse the damage to your long-term retirement plans caused by reducing or stopping your pension premiums.

There are several ways someone can rebuild their pension fund, and we have listed them below:

  • Increase / restart your personal contribution as soon as possible.
  • If you normally pay a set cash amount every month into your pension, consider changing to a set percentage of salary so that the pension premiums increase in line with any salary rises in the future.
  • If the pension premium is deducted via Salary Sacrifice / Exchange, request that the savings made as a result of this be re-invested back into the pension policy.
  • If the pension premium is not deducted via Salary Sacrifice / Exchange, ask the employer about this option as it will enable both the employee and the employer to potentially save money that can be used to enhance pension premiums.
  • Automatic enrolment legislation will undoubtedly increase the minimum premium levels that the employee and employer will be expected to pay in future years.
  • If bonuses are earned, some or all of these can be sacrificed / exchanged for additional pension premiums.
  • If an individual has a lump sum to invest, this can be used to top-up the pension for the current tax year and potentially the three previous tax years as well.

Contact us

For further advice, please contact us at advice@taitwalker.co.uk.

Other episodes in this series

Episode 1 – The impact of COVID-19 on pensions
Episode 3 – Gender pensions gap