What happens if I take a contribution break?Wed Apr 26 12:59:00 BST 2017
You can stop or take a break from paying contributions at any time and leave your fund invested. Please refer to your product key features document for any additional requirements. With an Aegon Retirement Choices Self-invested Personal Pension (SIPP) for example, you’re responsible for keeping a minimum fund value of £1,000 and 1% of the total value of the plan in your cash facility.
If your employer contributes to your plan, the amount they pay might depend on how much you contribute. Any break is likely to reduce your future pension. If you’re thinking of taking a contribution break, speak to your financial adviser or employer to find out more. Your terms and conditions will give you more details.
If you’re automatically enrolled or opt in, you can take a break from paying contributions or reduce your contributions to below the minimum level set by the government. But, you’ll be ceasing active membership and opting out of the qualifying scheme. You might not be able to re-join at a time that suits you. If you decide to opt out or reduce your contributions to below the minimum level (including stopping contributions completely), your employer will automatically re-enrol you into the scheme. This would happen at some stage in the following three years if you’re eligible.