Pause saving to have more money for now.
According to the BBC (UK) on October 2nd, until early September, 26-year-old Hassan Nassar was still contributing around £430 per month to his workplace pension scheme at the UK National Health Service (NHS). However, due to financial constraints, the doctor, who is undergoing specialist training to practice as a family doctor in the West Midlands, decided to temporarily suspend his contributions for about 6-12 months.
Nassar said he needed the money to care for a sick family member, save for his first home, and pay rent and student loans.
Before the suspension, he was contributing 10.7% of his pre-tax income each month to his pension scheme, while the NHS contributed a significant additional amount. Nassar estimates that stopping contributions for 6-12 months could reduce his future pension income by around £5,000-£10,000 due to missing out on a portion of benefits accumulated over several years.
Nassar understands this choice may be disadvantageous in the long run, but he believes he also has to consider his current financial needs. He plans to rejoin the program as soon as conditions allow and believes he still has about 30-40 years of work to continue accumulating funds for retirement.
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| A young person balances their personal expenses. (Illustrative image: Tima Miroshnichenko/Pexels) |
The BBC also noted the case of Evie, 22, from Cornwall. After graduating from theatre school and working for an event management company in London, she chose not to participate in her employer's retirement program.
Evie pays around £800 a month in rent, not including food and transportation. She understands that delaying savings will impact her finances in old age, but right now she has to balance living expenses with goals like buying a house and a car.
In the UK, workers aged 22 and above the state pension age, earning over £10,000 per year and meeting the relevant conditions, are automatically placed into a qualifying pension scheme by their employer. Workers have the right to withdraw from the scheme.
The withdrawal rate from the program is increasing but remains a minority.
Statistics released by the UK Department for Work and Pensions (DWP) on July 30, 2026, show that the percentage of people who start saving and then voluntarily withdraw from their pension plans has increased in the most recent year to around 11-12%. The DWP notes that this figure has fluctuated in recent years and may have been affected by the Covid-19 pandemic as well as periods of high living costs.
Specifically, in the third quarter of fiscal year 2025-2026, 11.5% of eligible individuals aged 22-29 who had just started saving after being automatically enrolled voluntarily withdrew from the program. This rate was 6.6% in the same period of fiscal year 2020-2021. For the 30-39 age group, the corresponding rate increased from 7.4% to 12.7%.
The upward trend isn't limited to just the younger age groups. DWP data shows that withdrawal rates also increased in the 40-49 age group, the 50-59 age group, and those aged 60 and above who are eligible for state pensions during the same period. Therefore, the pressure to maintain retirement savings isn't unique to Gen Z.
Nevertheless, the overall picture still shows a high level of participation. By 2025, around 90% of eligible workers in Great Britain – including England, Scotland and Wales – will still be saving through workplace pension schemes, equivalent to 22.6 million people. This represents an increase of around 600,000 people and one percentage point compared to 2024.
The DWP notes that after years of growth driven by automatic enrollment, participation rates in workplace retirement programs have remained relatively stable. While withdrawal rates and cessation of savings have increased in the most recent year, they remain low across the entire eligible workforce.
April Leeson, an expert at the financial advisory firm The Private Office, recommends that employees, if possible, avoid stopping contributions entirely. Some programs allow for reduced contributions during times of financial hardship. Stopping savings not only causes employees to miss out on their employer contributions but also wastes the time it would take for accumulated savings to generate returns.
However, not all programs are so flexible. Nassar said the NHS pension program he participates in does not allow employees to simply reduce their contributions when facing financial difficulties.
UK Pensions Minister Torsten Bell warned that the number of young workers not saving is increasing and that future generations of retirees risk receiving lower private pension income than current retirees.
Source: https://thoidai.com.vn/nguoi-tre-anh-tam-gac-tiet-kiem-huu-tri-de-lo-cuoc-song-hien-tai-758598.html
