Is it ever a good idea to stop paying into your UK workplace pension pot?

theguardian.com:

UK workers are leaving their pension schemes or reducing how much they pay in as the cost of living crisis forces people to make hard financial choices.

According to trade unions, some employees say they cannot currently afford to stay in their employer’s pension scheme. Others have decided to cut their contributions to release much-needed extra cash to help with their rising day-to-day costs.

“The cost of living crisis is having a negative impact on individuals and families right now, curtailing their ability to save, invest or contribute to their pension. People are having to take these more severe measures to plug the financial gaps they face – decisions which will sadly have a negative impact on their long-term finances if they are unable to reverse them soon,” said Richard Eagling, a pensions expert at the price comparison website NerdWallet.

In the very short-term it may help by providing some extra cash, and it is difficult to criticise anyone who is in a desperate situation, or worries they soon may be.

Typically, there will be a window during which a worker who has been enrolled into a workplace pension scheme can “opt out”, which means they leave the scheme and any contributions made are refunded. Alternatively, people will often be able to take a break from paying contributions at any time, or may be able to reduce the amount they pay in for a period.

But, yes, leaving a workplace pension scheme is almost always a bad idea. It means you are missing out on free money from your employer and investment growth.

For the past decade, the UK’s “auto-enrolment” regime has required all employers automatically to enrol eligible workers into a workplace pension, which the worker and employer pay into. Under auto-enrolment, at