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 2018-19…

  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 £6,032 a year / £503 a month / £116 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 £6,032 a year / £503 a month / £116 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.