What to do with your Pension

First check whether the life assurance with your pension will continue when you are pregnant and leave work. If the answer’s no, then you’ll need to set up alternative insurance.

Next you will need to find out what will happen to your pension when you leave. If your company isn’t clear about this, it’s worth contacting the pension provider direct: you’ll find a list of questions you should consider asking below.

Remember that you won’t be allowed to contribute to your pension while you’re not working, and a career break of five years can reduce your pension by 20 per cent. To compensate, you should consider using an Individual Savings Account (ISA) to provide you with a fund which can be used to buy you income in retirement.

An ISA does not offer as good tax benefits as a pension, because there is no tax relief on the amount you invest. It is, however, the next best form of saving and you can pay into an ISA whether or not your are working.

The rules regarding pensions can be complicated so it may be worth seeking independent financial advice before making any decisions.