Pension savers warned they could lose £150,000 in retirement by taking career breaks

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“But many women also see cutting pension contributions as an easy money-saving measure when they’re on maternity leave or working part-time, without thinking about the long-term implications this short-term move can have. It’s important to factor in the real cost of cutting contributions before you do it.”

To help people bridge their pension gap when taking a career break, Ms Suter has provided some top tips:

Talk frankly with your partner about your finances

“Before you go on any career break you’ve got a lot to think about, but make sure that if you have a partner, you talk about the nitty gritty of how both your finances will work while one or both of you are off work. As part of this you could agree to continue your pension contributions, with them subsidising the cost, or agree to put more money into your pension ahead of your leave.”

Get the right pension credits

“If you decide to take a career break then make sure that you claim child benefit. You can claim it from when your child is born and, as well as paying you £10,100 a year for your first child, you’ll also get valuable National Insurance credits from the Government that will help you to build up your state pension. If your partner earns more than £50,000 you will have to pay some of the child benefit back, but it’s still worth claiming as you’ll get the National Insurance credits.”

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