Auto-enrolment

What is auto-enrolment?

Auto-enrolment means your employer must automatically sign you up to a workplace pension if you’re eligible. You don’t have to do anything—it just happens. Money starts coming out of your salary, your employer adds their contribution, and your pension pot begins.

Who gets auto-enrolled?

You’ll be auto-enrolled if you:

• Are aged between 22 and State Pension age
• Earn at least £10,000 a year
• Work in the UK

If you don’t meet these criteria, you can usually still ask to join.

Can you opt out?

Yes. But if you opt out, you lose your employer’s contribution. That’s free money—typically 3% of your salary—that you’re turning down. The tax relief disappears too.

If you opt out, your employer will re-enrol you every three years. They’re required to.

How much is contributed?

The legal minimum is 8% of qualifying earnings—you pay 5%, your employer pays 3%. Many employers offer more generous schemes. Check what yours actually contributes.

Key points

• Employer signs you up automatically – no action needed
• Opting out loses employer contribution – that’s free money
• Minimum 8% contribution – 5% from you, 3% from employer
• Re-enrolled every 3 years – even if you opt out