What is auto-enrolment?
Automatic enrolment is a government plan to ensure more people pay into pension funds, thereby improving their incomes during retirement. By October 2018, all employers will be required to operate a workplace pension scheme for staff who pass the entitlement criteria. This is mandatory for staff who are:
- Not already in a qualifying workplace scheme
- Are aged between 22 and State Pension age
- Work in the UK
- Earn over £10,000 a year (this amount is regularly reviewed by the government)
Staff who meet the following criteria may opt-in to their employer's scheme:
- Are aged between 16 and 21 or between State Pension age and 74, and earn £10,000 or more
- Are aged between 16 and 74 and earn between £5,824 and £10,000
Both employee and employer must pay a minimum amount into an auto-enrolment pension.
For more information, click here to view our guide.
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