The midfielder is not among the 18 Pompey players whose deals will expire in June.
Hughes told The News: "Anyone that says the contract situation doesn't play on your mind is lying. You wonder where you are going to live next year.
"You're thinking about the possibility of buying property and putting down those roots. If you've got children - my girlfriend's got a daughter - you're wondering what you should do about her schooling arrangements.
"That does have an impact in your day-to-day life, I don't think you can argue with that. In football you realise it's a short career and these things happen.
"But with one year or two-year contracts you can't plan too much for the future. Whether it would drag you down and worry you to a certain extent is entirely down to the individual.
"But naturally you think about it. It's the first time I had ever been in that situation and not had the choice of what to do with a contract. When I was at Bournemouth my contract ran out through my choice because I wanted to move.
"You think about it, I'm sure everyone in that situation does, and it's nice to get it sorted."