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What is auto-enrolment?

Auto-enrolment is a government initiative designed to help people build up their retirement savings through a workplace pension. Your employer will make regular payments into your pension pot. And, depending on the plan you belong to, you may also make monthly contributions from your salary. These will be deducted automatically before you receive your pay each month.

The benefits of auto-enrolment

Easy access to a pension

A big advantage of auto-enrolment, as its name suggests, is that you join your pension scheme automatically. So, you don’t have to do anything yourself, unless you decide you want to opt out.

It also makes saving easier as you receive money from your employer and the government.

You need to remember you can’t usually touch the money in your pension until you are 55, at the earliest.

Watch our short video to find out more about auto-enrolment.

Watch time: 2 mins and 27 seconds 

Explaining contributions

When you’re auto-enrolled, your employer is required to pay contributions into your pension pot. There is a minimum level they must meet, but some employers choose to add more.

Depending on your plan, you may also have to contribute some money from your salary each month, or you may have the option to do so. This is either taken from your salary before it is taxed, or we claim 20% tax relief for you. The total contributions into your pension must be at least 8% of your salary, with a minimum of 3% coming from your employer.

If you’re unsure what level of contributions your employer pays you, you can check your ‘Contributions explained’ document in PlanViewer or ask your HR department. Find out more about contributions.

Four common questions about auto-enrolment

1. How do I know if I’ve been auto-enrolled?
2. Do I have to be auto-enrolled?
3. What happens if I earn less than £10,000?
4. What happens if I’m 21 or younger?

Check the contributions in your pension by logging in to PlanViewer today.