What being furloughed means for your workplace pension

An enforced break from work will chip away at your retirement savings. What are your options?

Woman going through bills © Getty Images
Don’t panic about a few months of missed payments © Getty
(Image credit: Woman going through bills © Getty Images)

What happens to your company pension if your employer puts you on furlough during the pandemic? With organisations employing around four million people applying to take part in the government bail-out scheme in its first week alone, this is a key concern for a huge number of savers.

There’s good news and bad. Happily, the furloughing scheme includes pensions: the government’s promise to cover 80% of wages, up to £2,500 a month until at least the end of June extends to the pension contributions your employer makes on your behalf.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.