Money Lesson Single

Stop contributing at 40

A software engineer of 40 with £200,000 already in her pension wonders whether she can stop feeding it. How far does compounding carry the pot on its own, and what does stopping actually cost?

Employment Expenses ISA Investments

Stop at 40

4 Goals

Her own pension contributions stop today, take-home rises, and the difference goes into a stocks and shares ISA.

Try this plan

Employment Expenses ISA Investments

Keep going to 65

4 Goals

The same ten per cent of salary keeps going into the pension for another twenty five years.

Try this plan

Stop at 40 Keep going to 65

Letting the pot ride from forty gets you most of the way there on its own, and the twenty five years of contributions you skipped were still worth ~£238.7k.