Because of cancer or its treatment, you may have to:
- take time off work
- reduce your hours
- stop work.
If you are employed and use your holiday allowance to take time off, your pension is not affected.
If you are unable to use your holiday allowance, there are different ways your pension could 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. Employers have different sick pay schemes. The legal minimum for employers to pay is Statutory Sick Pay (SSP). This is currently £92.05 a week, for up to 28 weeks. There are different rules for agricultural workers. It may not pay enough to cover your pension contributions. But some employers offer more generous sick pay in addition to SSP. This is called occupational sick pay, or company sick pay.
- If you reduce your working hours and are paid less, this will probably reduce your payments towards your pension.
- If you stop working and stop paying money into your pension, your final pension will be smaller.
In any of these situations, exactly what happens depends on your work contract and the rules of the pension scheme. To check whether your pension will be affected by time off or reduced hours, talk to:
- your employer
- the human resources (HR) department at work
- the pension scheme manager.
It is also worth checking whether you have any extra benefits with your pension policy. They could help you keep up your pension contributions.
When you started your pension, you may have bought a type of insurance that would keep building your pension if you cannot work. This may be called:
- a pension-contribution protection benefit
- a waiver of contribution benefit
- a waiver of premium benefit.
Talk to the scheme provider if you want to check this.
We have more information about managing work and cancer.