Think hard before stopping pension saving

WORKERS are being urged to think carefully about the valuable benefits they could be throwing away if they are considering ditching pension saving to ease the pressure on their finances.

With many employees facing wage cuts and added pressure on family finances due to the coronavirus crisis, some may seriously be considering the possibility of saving cash by opting out of workplace pension saving.

But Sir Steve Webb, a former pensions minister who is now a partner at pension consultants LCP (Lane Clark & Peacock), says people should check carefully whether opting out will leave their family with less protection in the event of their death.

Death benefits vary considerably according to the type of pension, but in some cases – particularly in the public sector – opting out of the pension scheme can leave a worker with a much smaller lump sum payout for their family.