When you are affected by cancer, you may have to take time off work or stop work altogether.
- If you use your holiday allowance to take time off, your pension won’t be affected. Once you have used your allowance, your pension may be affected.
- If you are getting sick pay, you could continue to pay into your pension as normal, but this is not always the case. Nearly everyone with an employer gets at least 28 weeks of sick pay during a period of illness.
- If you reduce your working hours and are paid less, this is likely to reduce the workplace pension you are building up.
In any of these situations, exactly what happens depends on your work contract and the rules of the pension scheme.
To check if your pension will be affected by time off or reduced hours, talk to your employer, the HR department at work, or the pension scheme manager.
If you stop working
If you stop paying money into it, your final pension will be smaller.
Check whether your personal pension came with insurance that continues to pay your contributions if you can’t work because of illness. This is called pension contribution protection benefit or a waiver of premium benefit. You should also check for life insurance as some older pension schemes will provide it too.
To check the rules and options for a personal pension, read the scheme’s policy document or talk to the provider.