A workplace pension is one of the most effective ways for you to save for retirement as both you and your employer typically pay in contributions to build up your pot.
Introduced in 2012, automatic enrolment legislation required employers to set up a company pension scheme for their employees. Employers need to automatically enrol eligible employees and make contributions on their behalf by their allotted 'staging date'. Even if you're not eligible for automatic enrolment you can still request to join your employer's scheme and if you pay in, your employer will normally contribute too.
There are a number of benefits to joining your workplace pension scheme:
Tax relief. To make saving into a pension more appealing, the taxman will contribute towards your pension fund. You automatically get 20% tax relief on your personal pension contributions. For instance if you invest £100, the taxman pays £25, giving your pension pot £125. If you're a higher rate tax payer you may qualify for more tax relief (through your tax return).
In general, tax treatment depends on your individual circumstances and may be subject to change in the future.
You may want to consider transferring pots built up with past employers into your current workplace pension scheme.
Here are some reasons why you may wish to do this:
Please speak to your current employer about what options are available to you or speak to a financial adviser.
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