The short version: A workplace pension is a retirement savings scheme set up by your employer. They contribute, you contribute, and you get tax relief on top.
Who gets one?
Employers must auto-enrol eligible workers. You qualify if you’re between certain ages, earn above a minimum threshold, and work in the UK. You can opt out, but you’ll lose your employer’s contributions.
How much goes in?
Minimum contribution levels are set by law. Employers must contribute a percentage, and you contribute too. Many employers offer to match additional contributions if you increase yours.
What about tax relief?
Basic rate relief is added automatically by your pension provider. Higher rate taxpayers can claim extra relief through Self Assessment. It’s essentially free money, so worth taking advantage of.
When can you access it?
Currently from age 55 (rising to 57). You can take 25% tax-free, with the rest taxed as income when you draw it.
Got questions about your workplace pension? We can help you understand your options.
