Workplace pensions
Find out how your workplace pension can help you build a better retirement.
What is a workplace pension?
Your workplace pension is set up by your employer to help you save for retirement. Each month, a portion of your pay is deducted and invested for you, with your employer also paying in.
This money stays invested in your pension, even if you leave your job, and is typically placed in a mix of investments like shares and bonds.
Your money in safe hands
We’ve got a team of experts managing your pension, so you can feel confident your savings are working hard for your future.
5 reasons to have a workplace pension
- Your workplace pension stays invested, even if you leave your job
- Your employer contributes with you
- You get tax relief from the government
- It’s separate from the State Pension, adding to your retirement income
- Pension investments typically earn more over time than cash savings
How does a workplace pension work?
Our workplace pension is a defined contribution pension scheme, which means you pay in over time to build up pension savings that are invested for your future.
Workplace pension contributions
This is the money paid into your pension each month by you, your employer, and the government, in the form of tax relief.
By law, total workplace pension contributions must be at least 8% of your earnings if you’re an automatic enrolment jobholder, with your employer paying at least 3% and you paying the rest. Both you and your employer can choose to contribute more.
Tax relief explained
When you pay into your pension, some of the money you’d normally pay as income tax goes into your pension savings instead.
For example, if you’re a basic rate taxpayer, for every £80 you pay in, the government adds £20. Think of it as ‘free’ money – boosting your savings every month.
Auto-enrolment and re-enrolment
If you meet the criteria, you’ll be automatically enrolled into your workplace pension scheme by your employer. You can choose to opt out if you wish.
If you opt out, your employer may re-enrol you at a later date. Every 3 years, employers must put eligible employees back into their pension scheme. This process is known as re-enrolment, and it gives you another chance to start saving for your future.
