Can I still pay into my pension with an IVA

Your creditors will allow you to continue to contribute into your pension.

They understand the importance of allowing you to save for your retirement, and the necessity of long term savings schemes, so allowing you to maintain your pension contributions will be agreeable to them.

However, they will want to make sure you do not set your contributions at an unreasonably high level, for every pound you contribute to your pension is a pound you will not be able to pay back towards your debts.

If your pension is provided by your employer and is a voluntary scheme, your creditors will expect you to reduce your contribution to the minimum threshold or percentage of your income, whatever that may be.

If you have no control over your pension contributions, and they are deducted at source, you will be allowed to continue at that established level.

Your creditor’s attitude should change the nearer you are to retirement age, as there is obviously a shorter time frame left for your pension contributions to build, but there is no hard and fast rule.

All cases are supposed to be assessed on their own merits and the surrounding circumstance of the individual concerned.

If you are struggling to afford an IVA, due to a lack of income or high expenditure, then you may wish to consider a voluntary cessation of pension contributions in order to use the extra income to bring the IVA payments within your financial range.

If you would like to discuss how your pension contribution might be affected by an IVA, just call our helpline on 0800 856 8569 and speak to one of the IVA.org advisers.