What is Automatic Pension Enrolment?

The Government introduced new rules in 2012 which require all employers to offer a workplace pension, into which they must automatically enrol all eligible workers.

Both you and your employer make contributions into the scheme. You must be enrolled in your workplace pension scheme if you:

• Are not already in a suitable workplace pension scheme
• Are at least 22 years old, but under State pension age
• Earn more than £10,000 a year (tax year 2014-15), and
• Work in the UK.

As long as you meet these criteria you’ll also be covered if you’re on a short-term contract, or an agency pays your wages, or you’re away on maternity, adoption or carers’ leave. The scheme is being rolled out gradually starting with the biggest employers first, but since 2018 the rules have applied to all employers.

You can opt out if you want to, but the aim of the scheme is to encourage people to save for later life, and if you do so you’ll miss out on your employer’s contributions and tax relief.