Every employer will be required by law to provide a workplace pension in due course, if their employees meet the qualifying criteria.
Over 5 million people are already benefiting from a workplace pension and saving for their retirement.
The new auto-enrolment regulations are being phased in gradually. They started in 2012 with large employers. Other employers are to follow in stages until at least 2018.
Eligibilty Criteria for Workplace Pensions
For any employee:
- Not already in a workplace pension
- Age at least 22 years old but below State Pension age
- Earning more than £10,000 a year
- Working in the UK.
As a result of Automatic Enrolment, millions of people now have a workplace pension. Find out how this applies to you.
Automatic Enrolment applies to all employers who have at least one member of staff. It doesn't just apply to businesses; if you employ someone directly to work for you - like a childminder or cleaner, for example ' you are an employer and will need to ensure that any eligible employees are enrolled into a workplace pension.
We can let you know more about the application process and contribution levels and everything you need to know to manage your workplace scheme.
Don't ignore the Workplace Pension!
As a result of Automatic Enrolment, millions of people now have a workplace pension.
Employers must provide and pay into a pension for you. The law is changing so that all employers will have to provide a workplace pension and contribute to it.
The reason for the workplace pension is is to make it easier for you to start saving for your retirement.
If you're not already in a workplace scheme and you're eligible, you'll automatically be enrolled in one. Hence the name auto-enrolment, which was introduced in 2012.
Even if you aren't eligible, check with your employer as you might still be able to join.
One of the main benefits of the new regulations is your employer has to contribute to your pension.
Find out the minimum your employer has to contribute to your workplace pension once you're enrolled:
Retirement seems like a long way off - it's never too early to start saving.
Although retirement might seem like a long way off, it's never too early to start saving! Saving through a workplace pension is easy and you don't actually have to do anything as your employer will enrol you. The earlier you start to save, the more money you will have when you come to retire as your money has time to grow.
Saving into a workplace pension is easy - you don't have to do anything as you will be automatically enrolled by your employer.
The chancellor George Osbourne announced on Wednesday's Autumn Statement 2015 that the next two scheduled increases to minimum pension contributions for auto'enrolled workers would be pushed back, which means savings on pensions tax relief.
The minimum contribution rate was scheduled to rise to 5% in October 2017 and then 8% in October 2018.
The Treasury said: 'The next two phases of minimum contribution rate increases will be aligned to the tax years - instead of increases taking place in October, they will now occur in April of the following year.'
Each employer will have a date when they have to begin enrolling people automatically; employers will then let their employees know in advance about how the process will be introduced in their workplace.
You get tax relief on every payment.
A PENSION IS A LONG TERM INVESTMENT, THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION.