Save for the future with a workplace pension
What is auto enrolment?
Employers must now offer a workplace pension to help you save for your future, by law.
What is auto enrolment?
Auto enrolment is now government legislation for workplace pensions. They are designed to help employees save for later life with an additional pension on top of their state pension. All employers need to provide it – regardless of the number of employees they have. Yes, even if they only have 1 employee!
Every eligible employee should be automatically enrolled into a workplace pension and it is then up to them to opt out, should they wish to.
Automatic enrolment was first introduced back in October 2012 and is a government requirement for all employers to supply a workplace pension for every eligible employee.
How does auto enrolment work?
As an employee, if you are eligible, you will pay into a workplace pension automatically, set-up by your employer. Your employer and the government will also contribute (in the form of tax relief) to your pension too. The money paid in over time builds up in a pension pot.
As part of automatic enrolment, an employer registers for a workplace pension and then enrols all employees into the scheme.
Whilst most employees are enrolled automatically into a workplace pension, some people aren’t eligible.
To qualify, employees should:
- be aged between 22 years old and the current State Pension age
- earn in excess of £10,000 a year (subject to change)
- work within the UK
- Not be paying into a workplace pension already
The government also contributes a percentage to your pension in the form of tax relief.
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Does an employer have to auto enrol their employees?
Yes, if your employees are eligible, you are required by law to enrol them onto a workplace pension, unless they:
- Serve as a member of the armed forces
- Are the only person in a company, such as a director
