Going part-time could leave a £58,000 hole in your pension: how to plug the gap

There are many reasons for switching to part-time work, but some savers don’t consider the impact on their pension until it is too late

Concerned woman reviews her personal finances
(Image credit: SrdjanPav via Getty Images)

Many people cut down their days or hours at some stage in their career – often to juggle childcare responsibilities, look after their health, or enjoy a more balanced lifestyle. But it is important to consider the impact on your pension too. Without careful planning, going part-time could result in a partially-funded retirement.

New research from financial services company Standard Life reveals switching from full-time to three days a week could lead to £58,000 less in your retirement pot, once inflation is factored in.

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Number of days workingFull-timeFour days a weekThree days a weekThree days a week
Pension contributions (employer and employee combined)8%8%8%13%
Size of pot aged 68£210,000£181,000£152,000£206,000
Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.