Watch our short video guide to learn what automatic enrolment is, and how it can help make your journey to retirement an easier one.
Your employer will have to enrol you in a pension scheme if you:
Even if you don’t meet these criteria and won’t be automatically enrolled, you can still join your employer’s pension scheme. All you need to do is let them know you want to join.
It depends how big the company you work for is. The very largest companies started automatically enrolling staff into a pension scheme in October 2012. All other companies will have to enrol their eligible employees by the start of 2018, with the bigger ones going first.
Whether you’re being automatically enrolled or not, your employer will write to you in advance to explain what’s happening and when.
For a start, automatic enrolment makes it easier for you to invest for your retirement. Rather than you having to take steps to join a pension scheme, most employees will be signed up as a matter of course.
But perhaps the biggest benefit is that if you’re automatically enrolled, your employer will have to contribute to your pension as well as you.
The minimum amount you and your employer must pay into your plan is worked out as a percentage of your pre-tax income. See the table below for details:
|Date||Minimum combined payments|
|Oct 2012 to 5 April 2018||2% (including 1% from employer)|
|6 April 2018 to 5 April 2019||5% (including 2% from employer)|
|6 April 2019 onwards||8% (including 3% from employer)|
As well as these contributions from your employer, you’ll also benefit from tax relief from the government. For every 80p you pay into your pension plan, the government adds 20p in tax relief, boosting it to a total contribution of £1. So if you paid £100 into your pension each month, the government would boost it to £125.
There are several other benefits to paying into a pension, too. Read about the benefits of paying into a pension plan to find out more.
How can auto-enrolment make your retirement journey easier? Listen to these people like you find out why.
See the table in the section above for details of the minimum you’ll have to pay in. You can pay in more, of course, if you want to increase the amount you’re setting aside. And remember that if you’re automatically enrolled, you’ll also get contributions from your employer - and tax relief from the government.
We can’t tell you what you’ll get back here, but once you’re a member of the pension plan, we will send you annual statements giving an indication of the kind of retirement income you could get for the amount you’re paying in. This will be based on a few assumptions, so you’ll need to read through it carefully.
If you can’t wait that long, you can check how much your pension plan might be worth using Pension Tracker
Your employer has to enrol all their eligible employees, but you can opt out if you want to. Think carefully, though. If you opt out, you’ll be missing out on the contributions your employer makes into your pension plan.
Please note: You can only opt out after you’ve been enrolled in the first place. We’ll send you details of how to do it after you’ve been enrolled.
Please take the time to read the essential guide to your scheme, which includes the key features and terms and conditions.
Your company pension scheme
Your company stakeholder pension scheme
The world of pensions can be a confusing place. So visit our jargon buster to learn the terms.
Use our calculator to see how much you might get when you retire.
Do you know how much you’re spending each month compared to your income? This planner can help you find out.