All employers must offer a workplace pension scheme to their staff, and automatically enrol those who fit certain criteria.<\/p>\n
They include people who earn at least \u00a310,000 a year per job, and are aged between 22 and state pension age. But not those aged under 22 and the self-employed.<\/p>\n
Workers can opt out if they do not want to save. Otherwise, 5% of their earnings above \u00a36,240 a year and a contribution from their employer worth 3% of earnings, is automatically saved into a pension pot.<\/p>\n
The idea is to encourage saving for retirement from an earlier age, to top up the state pension in later life. It has been widely regarded a success since its phased introduction in 2012, with relatively few people opting out.<\/p>\n
Those paying into a workplace pension also get tax relief on what they pay in.<\/p>\n
“So, if you are a basic rate taxpayer who would have paid 20% income tax it means you get 20% tax relief on your pension contribution,” says Helen Morrisey, head of retirement analysis at Hargreaves Lansdown.<\/p>\n
“This means that a \u00a3100 pension contribution would only cost you \u00a380.”<\/p>\n
She adds: “For a higher rate taxpayer who would have paid tax at 40% that \u00a3100 contribution would only cost them \u00a360.”<\/p>\n","protected":false},"excerpt":{"rendered":"All employers must offer a workplace pension scheme to their staff, and automatically enrol those who fit certain…\n","protected":false},"author":2,"featured_media":26142,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":["post-26141","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/26141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=26141"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/26141\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/26142"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=26141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=26141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=26141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}