Stop paying into pension ("for now")?

dunstonh

I'm thinking of stopping my final salary pension

Why?

so in the current economic climate would the advice be the same?

There is no "current economic climate" that would give any reason to withdraw from the scheme.

bendix

I despair. I totally despair.

lazer

dunstonh wrote: »

Why?



There is no "current economic climate" that would give any reason to withdraw from the scheme.

I'm also thinking about reducing or maybe quitting my pension my contributions each month, due to the current economic climate.
Basically I'm paying about £100 a month into a pension scheme, I have very limited savings and the only debt is the loan i took for my car - which i have almost paid off!

I want to buy a house, and without savings, I don't currently have a deposit.
My way of looking at it is that that £100 a month will be providing me with a better future if it goes towards a deposit for a house instead of into my pension scheme. As soon as I get the house, I will start the pension contributions again

zygurat789

sitting here at 64 I can only agree with all the advice you have been given. If you don't accept it you could be very sorry in 30 years time.
When I was your age and we had children we used to have days out rather than go away for a holiday. It's your time your children really want, they wont care if you play with them in the back garden or the beach, especially no a hot sunny beach where they will just fry and be miserable. Kids change your life, accept it.

dunstonh

My way of looking at it is that that £100 a month will be providing me with a better future if it goes towards a deposit for a house instead of into my pension scheme. As soon as I get the house, I will start the pension contributions again

If you cant afford to put £100 into a pension and save then there is probably a bigger problem with your finances that wont be helped by stopping the pension.

Is there an employer contribution?
If taken from your payslip remember that £100 stopped wont be £100 extra in your pocket.

SailorSam

One of the problems with taking a pension holiday is, 'cos other things always come up, you keep putting off re-joining.

Dave101t

im 27 and have no private pension. i invest all my spare money in a protfolio of my choosing, yes its after tax, yes there are no employer contributions but its nearly at 20k after only 2 years saving and growing. modern-day pensions are questionable.

dunstonh

im 27 and have no private pension. i invest all my spare money in a protfolio of my choosing, yes its after tax, yes there are no employer contributions but its nearly at 20k after only 2 years saving and growing. modern-day pensions are questionable.

So bascially you are comparing cars and petrol and trying to make out they are the same thing. A portfolio can be held unwrapped or wrapped in a tax wrapper. Nothing stops you holding a portfolio in ISAs or pensions. They have the same investment options.

The pension tax wrapper may not be the best for all but you would be daft to eliminate it on the basis of not understanding what it actually does.

bristol_pilot

At 33 and higher-rate taxpayer I wouldn't even think about stopping pension payments as the OP is considering. Have one less takeaway a week instead.

bristol_pilot

oops - just noticed this thread is almost 2 years old !