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.