{"id":134739,"date":"2025-09-13T14:40:16","date_gmt":"2025-09-13T14:40:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/134739\/"},"modified":"2025-09-13T14:40:16","modified_gmt":"2025-09-13T14:40:16","slug":"state-pensioners-face-pension-reduction-if-they-make-one-mistake","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/134739\/","title":{"rendered":"State pensioners face pension reduction if they make one mistake"},"content":{"rendered":"

State pensioners receiving payments from the Department for Work and Pensions (DWP) have been warned over eye-watering \u00a3100,000 losses for certain errors.\"StateState pensioners face pension reduction if they make one mistake<\/p>\n

State pensioners face a State Pension reduction if they make one mistake. State pensioners receiving payments from the Department for Work and Pensions ( DWP<\/a> ) have been warned over eye-watering \u00a3100,000 losses for certain errors.<\/p>\n

Opting out of a pension is seen as one of the biggest mistakes – because opting out for 5 years could cause a \u00a3100k reduction in pension pot, according to personal finance experts.<\/p>\n

The Institute and Faculty of Actuaries (IFoA) warned: “For a typical person, not taking advantage of extra contributions of 1% of their salary for 40 years could result in up to \u00a3100k loss.”<\/p>\n

READ MORE Drivers in England face new midday to 8pm ban from September 21<\/a><\/p>\n

The IFoA urges the government to “explore and engage to understand the potential of new initiatives and policies that may help to close pensions gaps,” it says. It wants a “specific focus on pensions gaps from advice and guidance support services such as \u2018Pension Wise\u2019.”<\/p>\n

It adds: “Explore a new option to setup household pension plans for joint pensions savings. Review the inequity of current pensions tax relief e.g., it costs \u00a380 for a 20% taxpayer to contribute \u00a3100 to a pension vs \u00a360 for a 40% taxpayer.<\/p>\n

“Reinvigorate its public messaging around minimum pension saving levels with a particular focus on those that are currently losing out when it comes to pension equity.<\/p>\n

“Review the minimum Automatic Enrolment (AE) contributions, to ensure that regulations do not accentuate pensions gaps and examine AE options for the self-employed.”<\/p>\n

6 months maternity leave could reduce a pension pot by \u00a330k or more, it found. Not starting a pension – starting a pension at 35 instead of 25 could mean a pension pot of only \u00a3500k at retirement instead of \u00a3800k.<\/p>\n

Ignoring pensions on divorce could mean that one party ends up with more retirement income than the other.<\/p>\n

And moving to 3 days a week for the second half of an individual\u2019s career could reduce their pension by \u00a3200k.<\/p>\n","protected":false},"excerpt":{"rendered":"State pensioners receiving payments from the Department for Work and Pensions (DWP) have been warned over eye-watering \u00a3100,000…\n","protected":false},"author":2,"featured_media":134740,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,2215,4176,4174,4175,56,54,55],"class_list":["post-134739","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-dwp","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/134739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=134739"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/134739\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/134740"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=134739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=134739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=134739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}