To stop pension contributions

[intothegreek]

I need to move from the marital home. To keep my kids near school in this area
I'd need to stop paying into my pension for the time being. I'm 40, 9 years contributions so far, and plan to work til I drop. Is this a mad idea or no brainer to use the money now when I need it?

What % are yours and your employer contributions?

Yes it is a mad idea. Do not do it.

A lot of people will tell you it's a bad idea. But needs must and you need the money now. So I would.

It's an awful idea, unless you love the idea of being in penury when too old and unwell to work.

You need your pension.

The people who will tell you not to do it are probably very comfortably off and have no idea about other peoples real struggles.

She also needs to not live in penury now.

At 40 and with only 9 years of contributions I think you should be looking to up your contribution and certainly not reduce it. What will you live on in old age? I would make increasing your income a priority but through earning more as opposed to lowering deductions

You don't have a lot already with only 9 years so I'd say no.

Having said that how much will it save you a month? How long do you plan to stop paying?

No.

They ate people who understand that the real value of the pension contributions now is infinitely less significant than their value at pension drawdown stage.

It isn't like just using the money now, then repaying. You can never recoup the value in the future.

Firstly, the money is worth a lot more in thirty-five years' time. That is compounded if the employer makes contributions, which they probably do, which are completely lost if you opt out. Secondly, at forty you have many, many more options to increase your income. You can take a lodger, up your hours, change jobs, move. All those things range from far, far harder to impossible at 80.

No, but if you need to house your children now what happens in 30 years time is probably not your main priority.

Surely ceasing payments temporarily isn't the end of the world.

Only do it as a last resort. You will pay tax on any amount that is not going in your pension pot.

As someone who didn't start seriously contributing to a pension until they were 39 I'd say don't do it.
I'm now thinking seriously about retirement but know I need to work full time because my pension is so small.

There is a lot of research that says reducing your working week for a few years prior to retirement eg 3 day's/week and retiring early both contribute to a better retirement and longer life expectancy.

Take in ironing? Matched betting? Or all the other ridiculous ideas Mumsnet comes up with.

Not everyone can just up their hours,

Your better stopping them for a while than getting into debt. DH stopped his while we paid childcare for a bit.

Does your employer require a minimum contribution level?

If you don't comply with that you can lose their contribution too. Don't risk that.

Perhaps you could lower your contribution rather than stoping it.

If you are in the LGPS, then you can opt for the 50/50 scheme (where you pay half contributions) until things pick up for you again.

9 years contributions at the age of 40 is very little.
it’s one thing to say at the age of 40 that you plan to work until you drop. You may not be able to.
have a look at other ways you could either save or up your earnings first.
how much each month would you save if you stopped contributing?

She wouldn’t be, her DC would only need to go to a new school. Something children do all the time.

Or are disabled, unable to work and truly cannot save a pension and are facing a miserable rest of life so cannot comprehend why anyone would actively choose poverty and old age.

It would be one of the last things that I would drop but I am assuming you are only considering it out of desperation and sometimes that is what we have to do.

Is it a private pension so you will still have a state one? If you do, and I can understand your reasons behind it, I would start paying again as soon as you can do so.

But sometimes that a life changing event for a child especially when combined with their parents separating. Changing schools can be a happy experience or it can be the reason they never achieve their potential. Your comment is very dismissive.

As yours is hyperbolic.

I did this as a young single mum , now 55 and massively regret it.