For automatic enrolment, employees fall into three categories depending on age and salary. Employees who already belong to a qualifying workplace pension scheme are not eligible for automatic enrolment.
Here’s a table to show which category you could fall into:
|16 - 21||22 - State pension age||State pension age - 74|
|Less than or equal to £5,876||Entitled worker|
|Over £5,876 and up to £10,000||Non-eligible jobholder|
|£10,000+||Non-eligible jobholder||Eligible jobholder||Non-eligible jobholder|
Eligible jobholders will be automatically enrolled into their workplace pension scheme.
If you choose to remain in the scheme, you will benefit from contributions from your employer. You will both need to meet the minimum contribution levels.
If you've previously opted out of the scheme, you will be re-enrolled again every three years if you are still eligible.
Non-eligible jobholders will not be automatically enrolled into their workplace pension scheme but can ask to join.
If you opt to join the scheme, you will benefit from contributions to your pension from your employer. You will both need to make minimum contributions.
Entitled workers will not be automatically enrolled into their workplace pension scheme but can apply to join a company pension scheme.
Your employer will contact you to give you the opportunity to join a pension scheme but is not obliged to contribute on your behalf.
Get the most from your pension or savings by registering or logging in to Manage Your Account today.
This guide aims to support you in understanding automatic enrolment and how this can affect you and your savings for retirement.
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