Skip to content
Opinion
Stuart Trow

Can You Protect Your Pension From the Cost-of-Living Crisis?

Tough economic times mean that more people, especially the young, are opting out of their workplace pension schemes. This should only be a last resort. 

Saving up.

Saving up.

Source: Bloomberg

The cost-of-living crisis has prompted more young workers to opt out of their workplace pensions, forgoing contributions from both their employers and the government. According to investment platform AJ Bell, 34% of workers have opted out or are considering doing so, a figure that rises to 47% for 18- to 34-year-olds.

This is the opposite of what this week’s Pensions Awareness campaign seeks to achieve. Ideally, halting pension contributions should only be a last resort given the matching contributions from your employer and the government. Yet tough economic times mean that more people, especially the young, are doing precisely that.