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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

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 It is now over 6 months old so the content may be out of date.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.

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