Pausing Contributions

[FacesOfStone]

This might be a silly question, but I’m comparatively ignorant of workplace pensions and so forth -

I could, in the short term, really benefit from having the money I pay into my pension each week. If I stop contributions for a period of time and restart in, say, a year's time, will my contributions to date be in place when I resume payments?

[heapsy]

I'm 100% certain that if you stop paying, you are deemed to have left the pension scheme, and will not be able to restart. Depending on which scheme you are in, you may be able to join one that started at a later date, but not really sure on that one. Even if you were able to, your financial situation in later life would be worse, so don't really see the point. If things are that tight, then you really need to look at cutting back on something else.

[RobertT]

This might be a silly question, but I’m comparatively ignorant of workplace pensions and so forth -

I could, in the short term, really benefit from having the money I pay into my pension each week. If I stop contributions for a period of time and restart in, say, a year's time, will my contributions to date be in place when I resume payments?

Whether you can restart payments will depend on which scheme you're in!

If you're paying into the DBCBS either as a section A, B, C or F(ex RMDCP) member, then once you stop making payments you aren't allowed to restart. But you could then join the RMDCP instead.

If you're in the RMDCP, then you can restart payments, infact you will be automatically re-enrolled after three years anyway.

In either case, you won't lose the contributions you've already made.

But also bear in mind that any decision to stop making pension payments will mean giving up a lot of 'free money'.
Your contributions benefit from tax relief and PSE, meaning each £1 gross payment from you only actually costs you £0.68, and that's how much 'extra' you'll have in your take home pay!
Plus you have contributions off RM too – up to 10% of pensionable pay in the RMDCP and 13.6% in the DBCBS.

For example: You're paying £25 per week into your pension. With tax relief & PSE, that's only actually costing you £17(the tax man pays the rest).
If you pay into the DBCBS, then RM will be putting in another £56.66. If you pay the maximum 6% into the RMDCP then RM will be paying £41.66.

Would those amounts be worth giving up for an extra £17 in your pocket each week?

[Janet Brum]

It`s not worth to stop the payments, as Robert says you`ll loose lots of free money from RM and taxman.

If you`re in financial difficulties, consider taking a small loan with commsave, you can pay low sums weekly and as it helped me when I was in need, I fully recommend them.

[Navalron]

You might also be entitled to housing benefit and working tax credits/universal credit if your wages don't come to a certain amount, especially if you have children. Most staff in RM need to claim in work benefits now as their mostly part time jobs now. Total disgrace.

[heapsy]

This might be a silly question, but I’m comparatively ignorant of workplace pensions and so forth -

I could, in the short term, really benefit from having the money I pay into my pension each week. If I stop contributions for a period of time and restart in, say, a year's time, will my contributions to date be in place when I resume payments?

Would it not be possible to do a bit of overtime, just to help yourself out?

[FacesOfStone]

Thanks for the various suggestions, which I’ve taken on board. As recommended, I’ve decided to stick with the pension contributions.

[arnold cheshire]

[quote="FacesOfStone"]Thanks for the various suggestions, which I’ve taken on board. As recommended, I’ve decided to stick with the pejnsion contributions. [/quote
How many years have you got in? I suppose it depends really what pension arrangements your wife has