Career Break - Make up pension shortfall?

Newbie2saving

Hi all,

I am looking for a bit of input on this one. I had 2½ yrs off work, returning to the same job and the company has offered to allow me to make up the amount I missed in pension contributions over this time and they will add their contributions. I can afford to do this (company offering a payment plan), however how much difference in reality will it make? Sorry I am totally pension niave. I am a female in my early 30's and don't plan to work until retirement age.

Thanks for any advice.

atush

It will make a big difference, esp the 'free money' from the employer. Esp if you are thinking of not working/paying into a pension in future. As it could have a retirement age lower than the state pension ageso will help you stop work younger.

Do it if you can afford it.

Newbie2saving

atush wrote: »

It will make a big difference, esp the 'free money' from the employer. Esp if you are thinking of not working/paying into a pension in future. As it could have a retirement age lower than the state pension ageso will help you stop work younger.

Do it if you can afford it.

This was my thinking, I really need to read up on pensions, but like you say the 'free money' is a bonus. I didn't know about the lower age access, sounds like I would be silly not to take them up on the offer.

Thanks!

atush

This is all in the scheme details. If you no longer have a copy, ask. Or just ask HR the retirment age of your scheme. Most are younger than SRA.