We’re living in a period of extraordinary change which impacts every one of us in our everyday lives. According to the Office for National Statistics (ONS) in September 2022, costs had risen by the following:
- 14.6% increase in food and non-alcoholic beverages
- 10.9% increase in transport
- 10.8% increase in furniture and household goods
- 9.7% increase in restaurants and hotels
In each area, the costs are interlinked – for example, travel to the supermarket is more expensive where you’ll buy more expensive food and drink.
It’s quite a concerning picture of real life for our members, and we know that you’ll be looking to make savings where you can. But we’d strongly recommend seeking guidance before deciding to stop paying into your pension as a means to save money. For example, you might not have realised that your pay is taxed after your pension contribution is deducted – meaning less of your pay is subject to tax. Tax relief on pension contributions means you wouldn’t save the full value of the contributions you make if you opted out.
We’ve run some member webinars this year, where we explained in detail the benefits of being in the scheme, as well as the option to pay lower contributions in the 50:50 Section. Members who are in the 50:50 Section pay half the contributions in return for half the benefits - yet still retain the full death in service and ill health benefits that the scheme provides.
Find out more about the 50:50 Section here.
Watch recordings of our member webinars.