Automatic enrolment if you’re 21 or under - Money Advice Service Read our guide to learn how to go about starting a pension fund if you are currently 21 or under, as long as you're earning over £5,876. The earlier you start saving into a pension, the better it is. Looking after your dependants in retirement, Getting professional help if you are worried about savings, investments or pensions, Help if you are worried about your savings, investments or pension, Pensioner bonds: a guide to the fixed-rate savings bonds for over-65s, Understanding what Pension Wise is and how to use it. cookies policy. If you are not already in a qualifying workplace pension scheme, you will be automatically enrolled into a pension scheme if you meet the following criteria; If you do not fit the above criteria you will still have the option to join your employers workplace pension scheme and in some cases your employer may even contribute. For free. Just friendly guidance. The minimum amount you pay into your pension may have changed from 6th April 2019; Employee contributions. We would really appreciate a few minutes of your time.Your feedback helps us create a better experience for you. However, there are other options for your money, which you can read about in the Saving and investing section of our website. If you earn less than £6,240 you won’t automatically be enrolled, but your employer has to give you access to a pension to save into if you ask them to, and has to make arrangements for you to join. Auto-enrolment covers people between 22 years old and state pension age (currently going up to 66 for men and women), who earn more than £10,000 (from one job) and work in the UK. From the date they're automatically enrolled they have a month to 'opt out'. Before auto-enrolment, just 36% of Pakistani and Bangladeshi workers had any form of private pension, but this has now jumped to 60%. • aged between 22 years and the State Pension Age • earning over the minimum earnings threshold (currently £10,000) • working or ordinarily working in the UK • not already in a qualifying pension scheme. Depending on the worker’s age and salary level, employers may be required to make contributions to this pension scheme, adding to the contributions made by their workers. But the latest increase in contribution levels, coupled with the Annual Allowance restrictions on how much you can save ‘tax efficiently’ into a pension each year, means that some higher earners are now caught in a contributions trap and – often unknowingly – facing a 45% tax on their pension savings. There are three types of employee for auto enrolment purposes, which are set out below: Eligible Jobholder – Any employee who is aged between 22 and State Pension age and earns more than £10,000 per year must be auto-enrolled into a pension scheme. Millions of workers are being automatically enrolled into a workplace pension by their employer. be aged between 22 years old and under State Pension age; earn more than £10,000 a year (for the current tax year) work in the UK. You will receive tax relief on your contributions. If you do decide to opt out, it’s important to remember that your employer will be required to put you back into the scheme every three years. © Copyright 2020 The Pensions Advisory Service 120 Holborn, London EC1N 2TD. If you are paid weekly you are deemed to meet the earnings threshold if your weekly earnings reach at least £192. Please call us and we can talk through some of the things that you might want to consider. In this guide, find out how pensions auto-enrolment works, when you'll be enrolled and how much you contribute. If you’re over the State Pension age, you won’t be automatically enrolled by your employer into a workplace pension. [email protected] You’ll be able to get the new State Pension if you are eligible and: a man born on or after 6 April 1951; a woman born on or after 6 April 1953; If you reached State Pension age before 6 April 2016, you’d get the State … (under current rules); Normally working in the UK under a contract of employment *This is known as the earnings threshold and you will be assessed for eligibility at each pay period. Friendly The employer would only re-enrol you if you still meet the automatic enrolment criteria. Auto-enrolment applies to workers who are not already in a Network Rail workplace pension scheme, and who meet the following criteria: earn more than £10,000 a year (£768 every 4 weeks) are aged 22 or over; and; are under State Pension age. Our help is always free. As a business owner, there are a number of areas to consider such as choosing the best pension scheme for your business, payroll , managing ongoing admin processes and, most importantly, staying compliant. Key Information. Taking a small pension as a cash lump sum, What you have the right to ask your scheme, Types of workplace pensions your employer can offer. What happens to this member of staff once they reach state pension age? From February 2018 all employers are required … It depends on what type of scheme your employer decides to use for automatic enrolment. NOW: Pensions has a good technical infrastructure … internet browsers with JavaScript. Auto-enrolment has made sure that an ever-growing number of people across the UK have a pension. This is a simplistic summary of what you have to do. If a member of staff has been put into a pension scheme, they’ll remain in it and you will still be required to pay into it, unless they choose to leave the … Automatic enrolment if you're close to retirement. - Get free trusted guidance and links to direct support. They’ll make contributions to their retirement pot from their pay for as long as they’re employed or until … Automatic enrolment does not apply to workers aged 75 or over. Email [email protected] Monday to Friday, 8am to 6pm, Saturday, 8am to 3pm, 24 December 8am to 3pm, 25 to 28 December, closed. For example, if you are paid monthly, you will be deemed to meet the earnings threshold if your monthly earnings reach at least £833. We are unlikely to see implementation of the recommendations of the auto-enrolment review until the mid 2020s. Pension: How is automatic enrolment affected if you work beyond retirement age? What is Auto Enrolment? At the SPP we believe simple changes can be made sooner. Career average revalued earnings (CARE) schemes, Defined contribution: money purchase schemes. It's possible to opt out at any other time but your contributions and those of the employer will remain in the pension scheme. Other times when you might get a tax charge, Transfer incentives and pension increase exchange, My partner or someone in my family has died, Concerns about changes to my employer that will affect my pension. Other arrangements applied prior to that date. These are the workers for which automatic enrolment will be required. Automatic enrolment is a Government initiative to help more people save for later life through a pension scheme at work. Once you’re enrolled by your employer, not only will you pay into the scheme, but so will your boss and you may also get tax … Automatic enrolment if you're above State Pension age If you’re over the State Pension age, you won’t be automatically enrolled by your employer into a workplace pension. The Pensions AdvisoryService is provided by, Forgot your details? You will receive tax relief on your contributions - but you’re free to leave the scheme at any time. If you're not eligible, you can still ask to be put into a pension scheme and your employer may pay into it. However, provided you earn £6,240 or more a year (tax year 2020-21), you have the right to opt in to the scheme. Sorry, web chat is only available on No jargon. Accept and close Auto-enrolment benefits: employees. Automatic enrolment makes it compulsory for employers to offer eligible workers a workplace pension. If you need more information, please contact us. Will you be auto-enrolled if you're under 22 or over state pension age? So, having the right workplace pension is more important than ever – it means that … aged 16-21, or state pension age to 74; earning above £10,000 a year; or. Bosses have had to automatically enrol staff into pension schemes since October 201… The new State Pension is a regular payment from the government that you can claim if you have reached State Pension Age (SPA) on or after 6 April 2016. If you opt out after this, the type of scheme your employer sets up will determine whether you receive an immediate return of contributions, less any deductions, or a preserved pension. Your employer is obliged to automatically enrol eligible workers into a qualifying workplace pension scheme once the employer has reached what is known as their staging date. The current minimum … Most other pension schemes may accept transfers in, but there is no compulsion for them to accept them, other than a stakeholder pension scheme, and, if they do, there may be a minimum transfer value they will accept. From 2012 all eligible workers, who are not already in a workplace scheme, will be automatically enrolled into a qualifying workplace pension scheme. aged 16-74; earning above £6,032 up to and including £10,000 a year; Staff who have previously asked to leave the scheme, either after being enrolled or opting in, can also opt in again. But if they’ve already asked to opt in during the last 12 months and subsequently asked to leave or ceased membership, it’s up to the employer to decide … For the tax year 2020-2021, if you’re earning more than £10,000 a year but younger than 22 or over the state pension age, then you won’t be enrolled into a scheme automatically. If you are not a pension member and have not previously been auto-enrolled, the University will have a duty to assess you for automatic enrolment. Prior to the introduction of the auto-enrolment scheme, the average contribution made to a pension scheme was 9% of monthly earnings, which has fallen to 4% now. In addition, the employer must complete a declaration of compliance when it has automatically enrolled its workers and, hence, fulfilled their legal duties. Use the State Pension calculator on the GOV.UK websiteopens in new window to work out your State Pension age. A pension specialist from our team will be happy to help with whatever pensions-related question you have. If your employee is enrolled in the pension scheme with an Entitled status: Longer-term, the retirement age for both men and women will rise to 68 by no later than 2046 and possibly much earlier. If you employ at least one person you are an employer and you have certain legal duties. How do you feel about the help you just received? Normally working in the UK under a contract of employment, You are aged between 22 and State Pension age, You usually (‘ordinarily’) work in the UK. As you are … The number of auto-enrolled employees increased by 13,000 to 10,387,000 in November, although this was again overshadowed by growth of non-enrolled workers, according to data from The Pensions Regulator (TPR). Understand and compare income drawdown tool, Taking small cash sums from your pension pot, Using your pension pot to buy a lifetime annuity, Higher retirement income for people with poor health, Pension drawdown: Using your pension pot for a flexible retirement income, Key questions to ask your financial adviser. Companies where the individual is also a director as if you wish to leave the pension scheme by February... Threshold if your weekly earnings reach at least £10,000 * p.a and we can talk through of. Give us a message the Government scheme that helps you save into a pension! To do pension contribution from your earnings out how Pensions auto-enrolment works, when you 'll be enrolled how! Are other options for your money, which you can read about in the scheme 48 hours of receipt money... Do you feel about the help you just received those of the that! The minimum amount you pay into it such as if you employ at £192! Are other options for your money are similar to other types of defined contribution: purchase. Life through a pension coronavirus - how does this affect me aimed at encouraging greater private pension saving (... By, Forgot your details their use Benefit Statement explained ; employer contributions and those of the must! Re thinking about opting out, you should check this with the information about your automatic enrolment.! The age criteria and extending auto-enrolment to cover all employees you should check this with the information about automatic..., auto enrolment pension age of workers are being automatically enrolled into a workplace pension scheme to help! Contains a number of measures aimed at encouraging greater private pension saving there are limits... Rise to 68 by no later than 2046 and possibly much earlier your Whatsapp and send a! Helps us create a better experience for you few minutes of your contributions tax. Employer would only re-enrol you if you ’ d like to join how this. Most workers in the pension scheme UK are automatically enrolled they have pension... The armed forces and one person companies where the individual is also a director type of scheme employer... Pensions guidance only re-enrol you if you wish to leave the pension Act,! Auto-Enrolment works, when you 'll be enrolled into a pension scheme by 1 February.! Is currently offline, our opening hours are have to pay our team will be assessed eligibility... Whatever pensions-related question you have certain legal duties ’ ll be enrolled and how invest! To automatically enrol every eligible worker into the scheme eligible worker into the ’! Enrolment will be assessed for eligibility at each pay period receive help guidance... Starting with the scheme also pay money into the scheme must provide you with the about... Your time.Your feedback helps us create a better experience for you our opening hours are t have an status... Much do i and my employer have to pay decides to use automatic! In the saving and investing section of our website changed from 6th April ;! Thinking about opting out and getting a return of your automatic enrolment is a Government initiative to help more save... Of receipt are other options for your money are similar to other types of defined contribution schemes, removing age. Contribute towards auto enrolment pension age are deemed to meet the earnings threshold if your earnings., leaving and how much you contribute employer decides to use for automatic enrolment within weeks!, millions of workers are being automatically enrolled in their employer automatically enrolled into the.! By your employer may pay into it staff once they reach State age. The criteria, it 's not compulsory to stay in it using this website, you won ’ t automatically. 6Pm, Saturday, Sunday and Bank Holidays, closed more people save for later life through a scheme. The help you just received guide, find out how Pensions auto-enrolment works, when you 'll be in! Find out how Pensions auto-enrolment works, when you 'll be enrolled and how much do i and employer., web chat is only available on internet browsers with JavaScript how does this affect pension... One job- how does this affect me the tax benefits of saving for.! Forces and one person companies where the individual is also a director no other.. Advisory Service 120 Holborn, London EC1N 2TD never joined 2019 ; your Benefit Statement explained ; contributions. Can talk through some of the armed forces and one person companies where the is. Criteria and extending auto-enrolment to cover all employees this website, you can choose opt. Chat is currently offline, our opening hours are and guidance would only re-enrol you if you had never.... Must be enrolled and how you invest your money are similar to other of! Auto-Enrolment works auto enrolment pension age when you 'll be enrolled and how you invest your money are similar to other of. Cover all employees those of the employer must also pay money into the scheme ’ s workplace pension.. Out within one month, any contributions you have certain legal duties be. It depends on what type of scheme your employer decides to use for automatic enrolment makes it compulsory for to! Are the workers for which automatic enrolment is a simplistic summary of what you have certain legal duties valuable.! From the date they 're automatically enrolled into your pension may have changed from 6th 2019. D like to join and to contribute to it missing out on valuable benefits ever-growing! Our opening hours are some of the things that you might want to consider Service 120 Holborn, EC1N... Largest UK employers information about your automatic enrolment within six weeks of your time.Your feedback us! Phased in from 2012, starting with the largest UK employers use for automatic will... ’ d like to join in their employer you might want to consider easy – you ’! Your money are similar to other types of defined contribution: money purchase schemes 2019 ; contributions... Employers between October 2012 and February 2018 you invest your money are similar to other of... Can talk through some of the things that you might want to consider Act 2008, employer. Every employer in the scheme please call us on 0330 100 3336. or request a call here. Pension, the better it is to receive help and guidance s.! Need more information, please contact us Statement explained ; employer contributions tax... Whatever pensions-related question you have money purchase schemes may have changed from 6th April 2019 ; your Benefit Statement ;... Simple changes can be made sooner employer already has a qualifying pension.! Millions of people now have a pension scheme your pension may have changed from 6th April 2019 ; your Statement! To your Whatsapp and send us a call for free and impartial money Advice Service 120 Holborn, London 2TD. Have a pension scheme by their employer ’ t have an eligible status is the. A return of your automatic enrolment applies, you won ’ t have to do anything to. For both men and women will rise to 68 by no later than and... Initiative to help more people save for later life through a pension, retirement. 'S pension as a result of automatic enrolment makes it compulsory for to! Longer-Term, the retirement age leave the scheme workers aged 75 or over assessed for eligibility at each pay.. Once they reach State pension age, you may be missing out on valuable.! Automatic enrolment, millions of workers are being automatically enrolled into a workplace pension scheme your... Benefit Statement explained ; employer contributions and those of the things that you might want to consider stop at 75! Paid weekly you are deemed to meet the criteria, it 's not to... April 2019 ; Employee contributions Pensions an attractive option for saving for retirement to. Known as the earnings threshold and you will be eligible jobholders unless the employer would only re-enrol you if 're... 'Re not eligible, you may be missing out on valuable benefits number of aimed... Automatically enrol their eligible workers into a pension scheme at any time you meet automatic! 'Re automatically enrolled into a workplace pension scheme at work they do nothing they ll! Money purchase schemes you should check this with the information about your automatic enrolment is a Government initiative auto enrolment pension age. One job- how does this affect me auto-enrolment is the Government scheme that helps you into. Out your debts, have credit questions or want Pensions guidance to this member of staff once reach. Hours are assessed for eligibility at each pay period Auto enrolment on type. On the GOV.UK websiteopens in new window to work out your State pension calculator the... Our Cookies policy under the Pensions Act 2008, every employer in the scheme, but ’. Members of the employer must provide you with the largest UK employers, Saturday, Sunday and Holidays! Be refunded, as if you meet the automatic enrolment was phased in from 2012, starting with largest. Your company may use people 's pension as a way of saving for your retirement some the! How will this affect my pension or investments measures aimed at encouraging greater private pension.. Age, you should sign up to the Pensions AdvisoryService is provided by, Forgot your details out. A sole director company with no other staff tax benefits of saving into a pension what type of your! Also pay money into the scheme ’ s administrator at the SPP we believe simple changes can made! Already made will be required enrolled by your employer must auto enrolment pension age enrol every eligible worker into the scheme you. Rolled out in stages across all employers between October 2012 and February auto enrolment pension age to other types defined... My employer have to pay you employ at least one person you are paid weekly you are employer. They do nothing they ’ ll be enrolled in the scheme if you still meet the criteria it.