Automatic enrolment

It’s law that by 2018 all employers have to put certain employees in a workplace pension scheme, like The People’s Pension and make contributions for them. So if you haven’t got a pension yet, you might get one soon.
Depending on your age and earnings, you may be automatically put into the pension scheme.

  • If so you’d be classed as a type 1 employee. You can ask to leave (opt out) if you’d rather not have one though.
  • If not you’d be classed as a type 2 employee. But don’t worry – you can still ask to join if you’d like to.

Based on the current tax year…

  1. If you’re aged between 22 and the age you’ll get your State Pension, and if you earn more than £10,000 a year / £833 a month / £192 a week, then you’ll be automatically enrolled by your employer. And both you and they will have to contribute to your pension savings.
  2. If you’re aged 16-74 and you earn more than £6,136 a year / £512 a month / £118 a week, you’ll still be able to join if you’d like. And both you and your employer will have to contribute to your pension savings.
  3. If you’re aged 16-74 and you earn less than £6,136 a year / £512 a month / £118 a week, you’ll still be able to join. You’ll have to contribute to your pension savings, but your employer doesn’t have to unless they want to.