How does it work?
A percentage of your pay is put into the pension scheme automatically every payday.
A deduction is taken from your pay, your employer makes a contribution and HMRC also contribute by giving tax relief.
The employer and HMRC contributions cost you nothing.
How much would I pay?
You would pay an amount based on your earnings and contribution levels. The summary tables below show how much would be paid in total *
*Table is based on 2016/2017 tax year tax free earnings, qualifying pensions earnings and statutory minimum pension contributions.
What if I am working two-part time jobs?
If you are an eligible job holder, you will be enrolled into both employer’s pensions schemes. You will then pay contributions based on your pay at each employer.
It is possible to combine pension pots when you come to retirement. It is recommended you speak to a financial advisor when doing so.
When can I get my pension and how much will I get?
This will all depend on your retirement age and how much you have paid into your pension before retirement. Pensions are invested in stocks and shares and therefore grow with interest, a bit like a savings account.
As you get nearer to retirement age, more of your pension is moved into cash so there is less fluctuation in is value when you want to take it.
The actual amount you could get will depend on many things. Some of these are under your control, like how long you save and the contributions you make. Some of them aren’t, like the contributions your employer makes and how much your retirement pot grows through investment.
You can use the link below to estimate your pension value on retirement:
Can I change my mind and get my money back?
You can change your mind and opt out of the pensions scheme. You cannot opt out until after you’ve been automatically enrolled.
The opt-out period is one month from when active membership is created, or you receive their letter with the enrolment information, whichever is latest.
You will be automatically re-enrolled every 3 years so you must write to your employer every 3 years if you want to continue to opt out.
The employer will issue a full refund within a month of receiving a valid notice of any contributions made to your auto enrolment pension.
If you decide to leave the scheme outside the opt out period, you will instead be ‘ceasing active membership’. Whether you get a refund of contributions will depend on the pension scheme rules.
What if I leave the country? *
Option 1 – leave your pensions in the UK pension plan.
Your pension will continue to be held by your pension provider until you claim it. You can request early payment of these pensions from age 55 at which point you may be able to take up to 25% of the value as a lump sum and use the remained to provide a pension for your lifetime. This is based on the UK laws applying to pensions and retirement.
Option 2 – transfer your UK pensions to an approved arrangement in your new country of residence.
It may be possible to transfer your UK pensions to a pension arrangement overseas if the pension plan is a Qualifying Recognised Overseas Pension Scheme (QROPS). In order to qualify as a QROPS and in order to transfer to a QROPS certain conditions must be met.
*information provided via https://www.pensionsadvisoryservice.org.uk/about-pensions/when-things-change/moving-abroad
|Starting to work for the employer||When your pension should start|
|Between April 2012 and March 2013||01-May-17|
|Between April 2013 and March 2014||01-Jul-17|
|Between April 2014 and March 2015||01-Aug-17|
|Between April 2015 and December 2015||01-Oct-17|
|Between January 2016 and September 2016||01-Nov-17|
|Between October 2016 and June 2017||01-Jan-18|
|Between July 2017 and September 2017||01-Feb-18|