Workplace Pensions 2012
From October 2012, employers will start to enrol workers into a workplace pension,with larger organisations enrolling their employees first as long as the employees meet the criteria below.
Who Pay’s in?
The employee and your employer and the government will pay into the workplace pension scheme helping you save up for when you retire.
Are You Eligible?
To be eligible for the workplace pension scheme you have to meet the criteria below
- are not already in a pension at work
- are aged 22 or over
- are under State Pension age
- earn more than £8,105.00 a year
- work in the UK
If you are eligible, your employer will write to you to explain how the changes affect you, giving you date of when they will set up the workplace pension scheme (this may be for smaller companies several years away). Employees can opt out of the pension whenever they want to.
Benefits of a Workplace Pension
- Saving money to provide you with an income when you retire
- Your employer will pay into it as well as you, giving you extra money later in life
- The government will also pay into it, in the form of tax relief
- Your workplace pension belongs to you, even if you leave your employer in the future.
- Automatic enrolment – a hassle free way of saving while you earn
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