The short version: Auto enrolment means your employer has to put you into a workplace pension automatically. You contribute, they contribute, and the government adds tax relief on top.
Who gets auto enrolled?
If you’re employed, over 22, earning more than £10,000 a year, and working in the UK, your employer must enrol you. You can opt out, but you’d be turning down free money from your employer’s contribution.
How much goes in?
Currently you pay 4% of your qualifying earnings, your employer adds 3%, and the government chips in 1% through tax relief. That’s 8% going into your pension pot with only 4% coming from your pay.
What if I’m a company director?
If you’re a director without a contract of employment, your company can’t auto enrol you. You’d need to set up a personal pension or get a proper employment contract in place.
Running a limited company and not sure what applies to you? Get in touch and we’ll help you figure it out.
