Enrolling into a pension at work
Since October 2012, employers began enrolling eligible workers in workplace pensions. When you pay into your pension, your employer and the government will contribute too. Find out how this affects you.
A workplace pension is a way of saving for your retirement arranged through your employer. It is sometimes called a ‘company pension’, an ‘occupational pension’ or a ‘works pension’.
How this affects you
Your employer will enrol you into a workplace pension if you:
- are not already in a pension at work
- are aged 22 or over
- are under State Pension age
- earn more than £9,440 a year
- work in the UK
Your employer will write to you to explain how the changes affect you.
You can choose to opt out of this pension, if you want to. But if you stay in you’ll have a pension for your retirement.
If you’re already in a pension at work and it meets the government's new standards, this will not affect you.
Find out more about who this affects:
When this is happening
When you will be enrolled depends on the size of the organisation you work for. Large employers started in late 2012 and early 2013. Other employers will follow over several years. Your employer will give you the exact date nearer the time.
Why this is happening
People are living longer. You could be retired for twenty years and you need to think about how you’ll fund it.
The State Pension is a foundation for your retirement. But if you want more when you retire, you may want to consider contributing to a workplace pension.
The full basic State Pension is £110.15 per week for a single person in 2013-2014.
The government is getting employers to enrol their workers automatically into a workplace pension so it is easier for people to start saving.
Benefits of staying in a workplace pension
A pension is a way of saving money to provide you with an income when you retire. There are many benefits to having a pension at work.
Your employer will pay into it. This contribution from your employer means your pension can build up more quickly than if you were saving for your retirement on your own.
The government will also pay into it, in the form of tax relief. This means some of the money you earn, instead of going to the government as income tax, now goes into your pension instead.
Your workplace pension belongs to you, even if you leave your employer in the future.
As your employer will automatically enrol you into this pension, it’s an easy way to save while you earn.
Being in a workplace pension is an important step towards giving yourself the lifestyle you would like in later life.
A note about the earnings figure
The annual earnings figure listed above (£9,440) is for 2013-2014 and may change each April.
How much you, your employer and the government will pay in
Find out how much you, your employer and the government will pay in.
You’re not sure if staying in a pension is right for you
Find out what to do if you’re not sure if staying in a workplace pension is right for you.
How safe are pensions
If you’re not sure how safe your workplace pension is, find out more.