What Is A Workplace Pension?

The State Pension is often not enough for people to maintain their desired lifestyle in retirement. To address this, the government has made it compulsory for employers to provide a workplace pension scheme to help top up retirement income. Workplace pensions are beneficial because contributions come from both you and your employer, providing a more substantial savings pot for your future. Some employers may allow you to also top up your workplace pension with additional contributions.

Every employer must now automatically enrol eligible workers into a workplace pension scheme. You qualify for automatic enrolment if:

• You are aged 22 or over but under the State Pension age.
• You earn at least £10,000 per year.
• You work in the UK.

Once enrolled, a percentage of your earnings is deducted and contributed to your pension pot, and your employer also makes contributions. Additionally, you may receive tax relief from the government on your contributions, further boosting your retirement savings.

Important Considerations:

• Investment Risk: The value of pensions can fall as well as rise, and there’s a chance you may get back less than you invested. It’s important to review your investment options and consider seeking financial advice.
• Regulation: Note that auto enrolment is not regulated by the Financial Conduct Authority (FCA).

If you have questions about pensions, why not check out our Guide to Planning For Retirement.

For tailored advice on workplace pensions and how to make the most of your contributions, consider speaking to a financial adviser. You are welcome to get in touch with us, when you are ready.

Please note that the Financial Conduct Authority does not regulate auto enrolment.