Pension auto-enrolment

Discover what it is and how it works. Learn about re-enrolment.

What is auto-enrolment?

Auto-enrolment is a government policy designed to help you save for retirement.

The auto-enrolment rules require your employer to automatically enrol you into a workplace pension if you’re eligible. Essentially, if you’re an employee aged between 22 and the State Pension age, earning over £10,000 a year, your employer must enrol you in their pension scheme. You do also have the opportunity to opt out.

Auto-enrolment contributions

When you enrol into a pension scheme, part of your qualifying earnings goes into your pension. The current* total minimum contribution is 8% of your earnings, with at least 3% coming from your employer. The other 5% usually comes from your salary.

Your qualifying earnings include your salary, bonuses, and overtime. The 8% is just the minimum, so you and your employer can contribute more if you want. You also get tax relief, meaning some of the tax that would have gone to the government goes into your pension instead.

What is re-enrolment?

Every 3 years, your employer must re-enrol all eligible staff who’ve opted out of the pension scheme. This means if you chose not to join the workplace pension when you were first enrolled, your employer will automatically put you back into the scheme after 3 years.

You can choose to opt out again if you want. While re-enrolment gives you another chance to save for your future, it’s completely up to you whether to stay in or leave the scheme again.

You’ll be enrolled if you:

Are aged between 22 years old and under State Pension age
Earn more than £10,000 a year (for the current tax year)
Ordinarily work in the UK
Opted out more than 12 months ago

FAQs: Auto-enrolment and re-enrolment

This depends on your employer and your employment contract. Many employers follow the minimum contribution rates set by auto-enrolment rules, which require a total of 8%, with at least 3% from the employer, and 5% from you. However, many employers can opt to contribute more than this minimum. You can also choose to make personal top-ups.

Your employer is required to automatically enrol you into a workplace pension scheme if you’re aged between 22 and the State Pension age, and earning over £10,000 a year. Auto-enrolment rules also require a minimum percentage of qualifying earnings of your salary to be paid into the pension. This is currently set at 8%, with employers paying 3% and you as an employee paying 5%.

Your employer is required to re-enrol you every 3 years. If you’d like to rejoin your employer’s workplace pension more than once in 12 months, your employer will need to agree.

There’s nothing you need to do. Your employer will let you know if you’ll be re-enrolled. Once you are, we’ll automatically process your contributions.

Auto-enrolment was introduced in the UK in 2012 as part of the government’s efforts to encourage more people to save for retirement. It was rolled out over 5 years, continuing until 2017, considering the size of different employers as it was implemented.

Today, auto-enrolment applies to all businesses and their workers, ensuring that everyone has the opportunity to save for their future.