Tag Archives: Workplace pension

The ultimate work perk?

What’s the best perk at work: A company car? Free coffee? How about money for your future?

Starting from October, the law is changing so millions of people will receive a workplace pension for the first time.

If you’re in work, your employer will automatically enrol you into a scheme. You can opt out but think carefully – what’s your plan B going to be?

This is going to affect you if you’re:

• not already in a pension scheme at work*
• aged 22 or over
• under State Pension age
• earn more than £8,105 a year
• work in the UK

Here are five reasons why you need to start thinking about a workplace pension:

1 – You won’t be the only one paying in

There’s a big difference between a workplace pension and other types of savings such as an ISA – your employer and the government contribute too.

So your workplace pension will be made up of three parts:

• You’ll pay in a small percentage of your earnings into the scheme
• Your employer will contribute too
• And the Government will give you tax relief – this means money that would have gone to the government as tax will go into your workplace pension instead

And with three contributions, your pension pot will grow a lot quicker!

TIP: You can get an idea of how much you will get from your workplace pension by getting a pension estimate. Speak to your employer or whoever runs your pension scheme to find out more.

2 – It’s easy – your employer does the hard work

Let’s be honest, sorting out a pension is rarely at the top of people’s “to do” list. The new law means your employer – and not you – will be responsible for finding a suitable pension scheme and sorting out the paperwork.

The law will affect largest companies first and roll out to medium and small companies over the next few years. Your boss will write to you to let you know when the changes will affect your company.

TIP: Find out when automatic enrolment will affect you by speaking to your employer or ask about it at your next job interview. Continue reading “5 Reasons to Start Thinking About a Workplace Pension” »