Displaying items by tag: pension contributions

Fewer people are cutting pension or SIPP contributions as the cost-of-living crisis eases, according to new data.

The latest Hargreaves Lansdown poll showed that 17% of people cut or stopped pension contributions in the past six months.

But that was a significant fall from the 22% who said the same thing a year ago.

However, older people were more likely to cut back with a quarter of over 55s saying they had reduced contributions, compared to just 11% of the 18-34 age group.

That could be due to older workers leaving the workforce early, said Hargreaves Lansdown, citing labour market data published today which showed economic inactivity in the latest quarter being driven by older workers.

Only an average of 123,000 people per year have made Class 3 National Insurance Contributions (NICs) which allow them to fill historic gaps in their NI records and receive a higher state pension over the last five years.

The scaling back of lockdown restrictions is boosting consumer personal finance confidence with one in seven expecting to increase pension contributions in the next year.