A five-year career break could reduce a defined contribution (DC) pension pot by 16 per cent, while working part-time could leave savers with 13 per cent less at retirement, according to research from Hymans Robertson.

The consultancy's latest DC Provider Insights Report warned that everyday life events and member behaviours could affect retirement outcomes more than many savers realised, highlighting the need for more personalised pension support.

Its analysis found that a member working full-time throughout their career could expect to accumulate a median pension pot of £224,000.

However, taking a five-year career break between ages 35 and 40 could reduce this to £189,000, a 16 per cent reduction.

Meanwhile, moving to part-time employment at 60 per cent of full-time hours from age 40 could leave the member with £195,000 at retirement, approximately 13 per cent less than their full-time counterpart.

The report also highlighted the potential impact of accessing tax-free cash early, finding that taking the maximum available tax-free cash at age 57 could reduce the projected pension pot at 67 to £171,000.

This represented a reduction of approximately £50,000, or 24 per cent, compared with leaving the money invested until retirement.

Hymans Robertson warned that these outcomes reflected common life decisions rather than poor financial choices, but could nevertheless have a significant impact on retirement adequacy.

Hymans Robertson head of DC provider relations, Shabna Islam, said: "Members are individuals with varied lives, experiences and decisions. The significance of caring responsibilities, career gaps and part-time working must be considered alongside planning for retirement.

"The impact of these scenarios cannot simply be written off; our analysis shows that a five-year career break could reduce a member's pension pot by 16 per cent, while working part-time could leave it 13 per cent lower. These are everyday experiences affecting everyday people."

Islam warned that failing to account for these scenarios could leave members with unrealistic expectations of their retirement income.

"Ignoring these common scenarios won't make the problem disappear," she continued.

"Employers who take the time to consider these realities, help their employees make better informed and planned decisions, will reap the rewards both today and in the longer term.

"Retirement planning is more than how much someone contributes today; it is also about understanding how career decisions, working patterns and access choices shape future outcomes."

Islam called for employers and trustees to move beyond generic pension communications and consider targeted engagement, flexible contribution structures and personalised modelling to help members understand the potential consequences of their decisions.

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