What happens to my pension if I take a career break?

Why this matters for women’s retirement outcomes Career breaks and caring periods can affect workplace pension saving and future earnings as well as the State Pension record. Read the gender pension gap explainer →

The short answer

In most workplace schemes, your own and your employer's regular contributions stop when pensionable pay stops. The pension already built remains yours, but the break can reduce the fund available later and may affect your State Pension record. Check both before you decide.

A career break has more than one pension effect. There is the contribution you do not make, the employer contribution you may not receive and the future growth those payments might have earned.

The position depends on your scheme rules, employment status and PRSI record. That is why the questions are more useful than a generic percentage.

Ask before the break begins

What happens to scheme membership?Ask HR or the scheme administrator whether benefits are preserved and whether any cover linked to employment changes.

Can contributions continue?Some arrangements may allow personal contributions; others will not. Get the answer in writing.

What happens to PRSI?Check your contribution statement and whether credited contributions or caring supports may apply to your circumstances.

How will you restart?Decide now when contributions will be reviewed after returning to work.

The pension impact belongs beside the income, childcare, tax, career and family consequences. It should not be used to frighten someone out of a necessary life decision. It should be visible before the decision is made.

Sources and further reading

Money, Just For Her provides financial education and coaching. It does not provide regulated financial advice or personal product recommendations.