It’s law that all employers must put certain employees in a workplace pension scheme, like The People’s Pension and make contributions for them.
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…
- 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.
- If you’re aged 16-74 and you earn more than £6,240 a year / £520 a month / £120 a week, you can opt into the scheme. And both you and your employer will have to contribute to your pension savings.
- If you’re aged 16-74 and you earn less than £6,240 a year / £520 a month / £120 a week, you can request to join the scheme. You’ll have to contribute to your pension savings, but your employer doesn’t have to unless they want to.