How your situation affects your workplace pension

The following examples explain how the changes to workplace pensions affect you and if you’ll be automatically enrolled into a pension at work. Find out how your age and how much you’re earning affects you.

You’re not already in your employer’s pension, you’re earning more than £7,475 a year, are aged 22 or over and are under State Pension age

You’ll be automatically enrolled into a workplace pension by your employer. Your employer and you will both pay into it. You will also get a contribution from the government in the form of tax relief.  

You’re not already in your employer’s pension, you’re earning £5,035 or less a year, are 16 or over but under 75

Your employer will not automatically enrol you into their workplace pension. But you have the right to ask them to enrol you into a pension if you want. Your employer does not have to pay into it but can choose to do so. You might also get a contribution from the government in the form of tax relief – check with whoever runs your pension scheme.

You’re not already in your employer’s pension, you’re earning more than £5,035 up to and including £7475 a year, are 16 or over but under 75

Your employer will not automatically enrol you into their workplace pension. But you have the right to join if you want. Your employer and you would both pay into it. You might also get a contribution from the government in the form of tax relief – check with whoever runs your pension scheme.

You’re not already in your employer’s pension, you’re earning more than £7,475 a year but are younger than 22

If you're aged between 16 and 21, your employer will not automatically enrol you into the workplace pension. But you have the right to join if you want. Your employer and you would both pay into it. You would also get a contribution from the government in the form of tax relief.

You’re not already in your employer’s pension, you’re earning more than £7,475 a year, but are State Pension age or older

If you have reached State Pension age but are under 75, your employer will not automatically enrol you into their workplace pension. But you have the right to join if you want. Your employer and you would both pay into it. You might also get a contribution from the government in the form of tax relief – check with whoever runs your pension scheme.

You’re already in your employer’s pension

 You will not be automatically enrolled into your employer’s workplace pension as you’re already in it. 

You’re self-employed or a ‘single person director’

You don’t have to enrol yourself into a workplace pension. However, it might be a good idea to think about what income you’ll have to live on when you retire. You might want to put some plans in place for your later life, such as starting a personal pension, if you haven’t already done so. You might also want to consider getting independent financial advice.

You’re a ‘single person director’ if you are a director of a company and the only worker in that company.

Tax relief – what it is

Tax relief means some of the money you earn, instead of going to the government as income tax, goes into your pension instead.

Workplace pension – what it is

A workplace pension is a way of saving for your retirement arranged through your employer. It is sometimes referred to as a ‘company pension’, an ‘occupational pension’ or a ‘works pension’.

A note about the earnings figures

£7,475 – if you earn more than £7,475.00 a year, and you meet the other criteria, your employer will enrol you into their workplace pension. If you earn £7,475.00 or less, you will not be enrolled automatically, but you have the right to join a workplace pension if you want.

£5,035 – if you earn more than £5,035.00 a year and you are in the workplace pension, your employer has to contribute to it.  If you earn £5,035.00 or less a year, your employer does not have to contribute, but can choose to do so.

Please note the earnings figures listed above, (£7,475 a year and £5,035 a year) may change each April. If they do, this webpage will be updated.

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