Learn more about workplace pensions and what it means for you…
Workplace pensions are a way of saving for retirement through your employer. Some workplace pensions are called ‘occupational’, ‘works’, ‘company’ or ‘work-based’ pensions. A percentage of your pay is put into the pension scheme automatically every payday.
How Do I Enrol In A Workplace Pension?
You’ll be automatically enrolled into a workplace pension if:
- You’re at least 22 years old
- You work in the UK
- You earn at least £10,000 per year
Your employer must write to you when you’ve been automatically enrolled into their workplace pension scheme. They must tell you:
- The date they added you to the pension scheme
- The type of pension scheme and who runs it
- How much they’ll contribute and how much you’ll have to pay in
- How to leave the scheme, if you want to
- How tax relief applies to you
A percentage of your pay is put into the pension scheme automatically every payday.
Who Pays What?
Legally, a minimum of 8% of your salary will go into your pension – 3% is usually from your employer and 5% is contributed by you. However, you can increase your contributions over time as your salary increases.
Your employer does not have to contribute to your pension if you earn these amounts or less:
- £520 a month
- £120 a week
- £480 over 4 weeks
Read more about workplace pensions here.