Auto Enrolment – The Basics
What is auto-enrolment?
The government has introduced a new law designed to help people save more for their retirement. It requires all employers to enroll their workers into a workplace pension scheme if they’re not already in one.
Why is auto-enrolment happening?
Because people are living longer and those who have lost faith in pensions are not otherwise saving for their retirement.
Is it compulsory for employers to auto enroll all employees?
As an employee do I have to stay in the pension scheme?
No, you can choose to opt out of the scheme if you want to.
Who will be enrolled?
Individuals aged 22 or above (but under state pension age) and currently earning more than £8,105 a year.
When will this happen?
The timing of when employers will automatically enroll workers depends on the number of employees in the business. Companies with fewer than 50 workers will begin the process in June 2015. Other employers will follow gradually up until 1 February 2018.