Auto-enrolment

The government is trying to encourage people to save for retirement.

To help achieve this, employers are required to set up a pension scheme and automatically enrol eligible workers.

Employers and employees contribute into the pension pot based on the employee's qualifying earnings. The current minimum rates are 3% for employees and 2% for employers. 

Pension schemes have to meet certain conditions in order to comply with auto-enrolment.

Who is eligible?

Workers aged between 22 and their state pension age who earn more than £10,000 a year must be auto-enrolled in a workplace pension.

Other workers who don't meet these criteria may have the option to join a workplace pension scheme.

How are employers affected?

Employers are responsible for making sure they meet their auto-enrolment duties. This includes:

  • identifying eligible workers
  • letting staff know how they will be affected
  • choosing a pension scheme which meets the conditions for auto-enrolment
  • making payments
  • ensuring ongoing compliance such as auto enrolling workers who become eligible
  • completing a re-declaration of compliance every 3 years to The Pensions Regulator.

This section of our site contains guides and calculators to help you think about your financial planning needs.

They are aimed at both business owners, who may also be employers, and private individuals with wealth management goals.

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