INCREASES TO MINIMUM PENSION CONTRIBUTIONS

Langricks advises employers on how to keep employees on track.

The government introduced automatic enrolment in 2012 to help employees get the retirement they want.  Since then, millions of employees, and their employers, have begun saving into a workplace pension. 

The next step is for the minimum amount paid towards a workplace pension – by an employer and by an employee – to increase. This will help towards building a pension pot for the future.   

Langricks has been working with its clients to let employees know about the changes and the benefits of saving into a workplace pension.

Did you know that: 

  • Saving into a workplace pension is a simple and easy way to help ensure you get the kind of retirement that you want 
  • The earlier you begin saving, the more time your savings have to grow. You can also choose to save more than the minimum if you wish
  • The money will remain yours, including the contributions made by your employer, even if you change jobs
  • When you retire, you will be able to choose how to use your pension savings

From 6 April 2019,  employers will have to contribute a minimum of 3%, and the employee will contribute 5% from a portion of their earnings*, making a total of 8% paid into a retirement savings pot.

To get to know the benefits, and find out more about saving into a workplace pension visit www.workplacepensions.gov.uk/employee

*The law requires that, as a minimum, your contributions will be based on your earnings between £6,032 and £46,350. To find out what proportion of your salary your pension contributions are calculated on, check the information provided when you were enrolled.

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