Automatic enrolment is a hassle-free way to build up retirement savings. Because your employer arranges the workplace pension, you’re taking a meaningful step towards your financial future with very little effort.
What is automatic enrolment?
A workplace pension — sometimes called a ‘company pension’ or ‘occupational pension’ — is a retirement savings arrangement set up by your employer. Automatic enrolment makes it easy to save while you earn. You benefit not just from your own contributions, but from your employer’s contributions and from government tax relief too.
Why is it happening?
Many people simply aren’t saving enough for retirement, and we’re all living longer. Automatic enrolment is a collective push to help close that gap.
Who gets enrolled?
Your employer will automatically enrol you if you:
- Aren’t already in a qualifying pension scheme
- Are aged 22 or over
- Are below State Pension age
- Earn more than £10,000 a year (reviewed annually) and work, or usually work, in the UK
Opting out
You can opt out within one month of officially joining the scheme and get back any payments you’ve made. Opt out after that and you may not get a refund — your payments stay in the scheme until retirement.
Rejoining
If you’ve opted out or stopped paying in, you can opt back in. Employers must also automatically re-enrol eligible workers at regular intervals, typically every three years — a useful prompt to revisit your savings and options.
Worth a review
It’s well worth checking how your workplace pension fits with your wider plans. We’re always happy to help you make the most of it.
Important — the risks
The performance of your investments is subject to risk. Its performance may fluctuate based on movements in the market and economic conditions. Capital is at risk. Currency movements may also affect the value of investments. You may get back less than you originally invested.
Past performance is not a reliable indicator of future performance. Tax treatment is based on an individual’s unique circumstances and may be subject to change.