Government officials and regulators are discussing the possibility of letting firms suspend pension payments, in a bid to ease financial pressure during the coronavirus pandemic.
No decision has yet been made, as to which firms may be allowed to suspend automatic enrolment payments, and when such a ‘pensions holiday’ might start, but The Pensions Regulator confirmed this was option actively under discussion, and further updates on this situation would be published shortly.
Financial advisers and benefit consultants have said they have already had queries from business asking whether they could suspend payments.
Cavendish Ware associate director Roy McLoughlin says he has taken a number of such queries. “There is severe financial pressure on a lot of businesses. Pension payments are be one of their major outgoings and suspending them for a six month period, for example could make a significant difference.
“I am not saying whether this in the long term is the right thing to do – but at a time when both individual and corporate finances are under pressure it may help businesses survive, people keep their jobs, and rents and mortgages get paid.”