Millions to be signed up for automatic enrolment - Pensions - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Millions to be signed up for automatic enrolment

Millions to be signed up for automatic enrolment

Category: Pensions

Updated: 01/10/2012
First Published: 01/10/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Employers across the UK will have a legal duty to enrol their workers into a workplace pension scheme and make contributions, as the biggest change to the pensions system takes place today.

Known as auto-enrolment, millions of employees aged between 22 and the state pension age will be given the opportunity to invest in a pension. Workers earning a minimum of £8,105 will be eligible.

The move is part of the Government's drive to address the pension crisis and encourage more people to invest in their futures by placing money into a pension scheme.

Over the course of the next four years, employers will contribute a minimum percentage of 2% of earnings, made up from 0.8% from employees, 1% from the employer and 0.2% as a result of tax relief.

Large firms are expected to be the first to enrol their employees into the scheme.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 
Close