What is auto enrolment?
If you are over 22 and in work then you may be entitled to extra money from your employer.
Money for nothing? Not something you hear offered every day, but the Government’s new law means that all employers will soon be legally responsible to enrol their staff onto a workplace pension scheme.
So, who’s eligible? The criteria is pretty simple:
- aged between 22 and State Pension age
- earn more than £10k a year
- work in the UK
The new law means that a small percentage of your wage will be paid into a pension scheme with extra money added on top by your employer. This is then used to build up a pension pot which can be used to pay you an extra income on top of your State Pension when you reach pension age.
When your employer mentions auto enrolment you will have the option to ‘opt out’. This may seem like a good decision when you have a limited budget, but making the small investment each month will make a huge difference in later life.
Getting older and needing to make decisions about a pension can be easily put off, but you aren’t often offered the chance to claim extra money. Stay in and make a difference to your future.