What is auto-enrolment?

Auto-enrolment is a UK Government initiative aimed at helping more people save for the future through a workplace pension.

In the past, not all employers offered a workplace pension, or if they did, not all employees joined.

Auto-enrolment makes it compulsory for employers to automatically enrol their eligible workers into a workplace pension. Both the employee and employer must contribute to the pension plan. If an employee chooses not to, then they can opt out. If they do this it means their employer doesn't have to contribute to their plan.

When the UK Government introduced auto-enrolment they set minimum contribution limits for both employees and employers. These limits have gradually increased over time with the most recent increase applying from April 2019. If you want to find out more about auto-enrolment and whether this applies to you, speak to your employer.

More information

Your contributions

One of the benefits of your pension scheme is that your contributions are flexible. You can contribute as much as you like into your pension, although the total amount of tax relief you get on your pension savings is limited. 

Investment choices

You may have a few options when it comes to investing your money.

Tax efficient

The money you save into your pension comes from your salary. There are different ways to make your contributions and they impact the tax savings you make.

Your pension

During your working life, it's important to consider your retirement and the ability to enjoy life when you reach retirement. Saving into your workplace pension could help you do just that.

Taking your money

Life isn't always as simple as we'd like it to be. Some things take us by surprise and those surprises can cost money. Your circumstances will change over time and so may the lifestyle you expect to have when you retire.

Salary sacrifice

This is an example of how salary sacrifice might work.

Non-salary sacrifice

This is an example of how non-salary sacrifice might work.