In most cases, staying in a workplace pension after being automatically enrolled makes sense. But if you have debts that aren’t comfortably under control, think about prioritising repaying those instead.
What’s in this guide
Think twice if your debts are a problem
It’s common for people to save and borrow at the same time – for example, making pension contributions at the same time as paying off a mortgage.
But if you find yourself relying on borrowing to make ends meet each month, it’s important that your first priority is to get on top of your debts.
Being automatically enrolled in your employer’s workplace pension is an easy way to save for your retirement, but if you’re struggling with your borrowing, it makes sense to think twice.
Need someone to talk to about your finances?
If you’ve missed more than one bill payment, you can talk to a specialist today, online or by phone, who will be able to help you start sorting out your financial problems.
Find free, confidential advice now using our Debt advice locator tool
To help you work out how much it could cost to pay into the pension – and so how much of your debts you could be paying off instead – use our Workplace pension contribution calculator.
Be aware that you can always opt in to your employer’s workplace pension scheme later if you decide to pay off your debts first.
If you get into the habit of setting aside money each month to pay off debts, you could carry on putting that money into a pension when you’ve paid off your debts.
Join our Facebook group
We’ve set up the Debt Support Community private Facebook group to help give you new ideas to tackle debts and keep you motivated.
Need more information on pensions?
Call us free on 0800 011 3797 or use our webchat. One of our pension specialists will be happy to answer your questions.
Our help is impartial and free to use, whether that's online or over the phone.
Opening times: Monday to Friday, 9am to 5pm (helpline), 9am to 6pm (webchat). Closed on bank holidays.
