Life can change quickly: so prioritise your pension for long term security

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Life happens and we can’t control it. We can control some aspects of it but it’s mostly uncontrollable life events that come up, such as death or job loss. 

Emotionally they set us back. We slow down when we hit milestones in our lives whether positive ones, like parenthood, or negative ones. And we also start questioning our finances. 

Our pension is definitely on the list of things we tend to worry about when life changes slightly, as well as any other savings account we currently have open. But it shouldn’t be this way. 

When life gives you lemons, slightly adjust your financial goals and priorities to make it work. 



Growing your family and bringing children into this world is a happy milestone in anyone’s life. Yet most people think that they will have to compromise certain aspects of their lives to accommodate such a big change. 

For instance, some are thinking of compromising their career and jobs, their free time, some their saving’s account since they’ll start a saving’s account for their child, and their pension. 

However, in your 30s and 40s, where typically people expand their families, can also afford to do so while maintaining both living within their means and saving up for various reasons. 

If you feel as if it’s not manageable to save any longer to your pension, you can adjust the contributions made into your fund instead of stopping contributing to your pension entirely. Stopping pension contributions for however long could potentially set back your planned retirement age and even your goals for saving. 

The same principle applies when parents decide to divorce. Single parents might feel like their pension and savings will suffer, and seriously consider opting out of their pension for a while. But how long is a while?

The narrative slightly changes when you become ill before 55 and you want to start receiving your pension as you’re unable to work anymore. Firstly, you have to prove that you’re unable - mentally and physically - to work further and that you’re eligible to start receiving it before retirement age. You can receive your pension as usual but the general rule of thumb is that the longer you work, the more chances you have of a valuable pension pot. 



In the situation of losing your job, things get a bit more complicated. You’re not able to contribute to your workplace pension pot that you have with that particular employer anymore, but you don’t lose your money forever either. It is saved until you are eligible to start receiving it. 

This is the reason many people find and consolidate their pensions in one place, because they want peace of mind at every stage of their lifetime knowing exactly where their hard-earned money is saved. 

Generally, all your workplace pension pots still exist, and yes you have multiple ones if you’ve changed a few jobs throughout your career. But until you get a source of income from which you will save for your pension, you have to put your pension saving on pause. As soon as you’re back on track, so is your pension. 



Life changes come and go and they affect us no matter what. But our savings and our pension don’t have to suffer because there’s always a solution. You might have to lower your contributions or readjust your financial goals. You might have to evaluate your sources of income and see where you are able to save from. 

Opting out of a pension is never the immediate and most logical solution. You are risking your financial future in your retirement. Evaluate your circumstances and see whether you can adjust your lifestyle slightly. Do something that your future self will thank you for.

At Raindrop we offer a service where we can help you locate your pensions from your previous jobs and help you consolidate them all into one place.

You can find out more about our service here: https://www.myraindrop.co.uk/pension-finding

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If you are considering finding and combining your pensions into one place then Raindrop could be a good solution for you. If you choose to combine your pensions with Raindrop, as with all investments your capital is at risk. The value of your pension can go up as well as down.

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