What happens to my pension if I'm made redundant?

Being made redundant does not affect the pension rights you have already accrued. For defined contribution (DC) pensions — the most common type for private sector workers — your pot remains invested as it was. You simply stop making contributions and your employer stops contributing. You become a 'deferred member' and the pot grows (or falls) with investment until you draw it down from age 55 (rising to 57 from 2028).

For defined benefit (final salary or career average) pensions, your accrued pension is protected and revalued in line with inflation up to a cap (currently CPI, capped at 2.5% for pre-2009 accrual). You will receive a deferred pension statement showing your projected pension at normal retirement age. You can usually transfer the deferred value to a personal pension (though taking independent financial advice is required for transfers over £30,000).

During your redundancy notice period (or the period covered by PILON), pension contributions should continue as normal — including employer contributions — if you are working the notice period. If you receive PILON, whether pension contributions continue depends on your contract and scheme rules. Auto-enrolment continues while you remain employed during notice; it ceases on your termination date.