Each pension scheme can offer a different contribution structure. Contributions are being phased in over the next few years, but by October 2018, the minimum percentages will increase to 8 per cent with your employer having to contribute at least 3 per cent. Some employers may contribute more than the minimum required and you may be able to use salary sacrifice (i.e. giving up part of your salary) to increase the amount you save into your pension.
It is a good idea to invest as much as you can afford into a pension fund, as this will provide you with a better income for your retirement. Whether you are already part of a workplace pension scheme, have a personal pension plan in place or are yet to start it is important to make an informed decision about how to save for your retirement. An IFA or financial adviser can help you find out more about workplace pensions, auto enrolment contributions, personal pensions and the other options available to you to save for your retirement.
Find an independent financial adviser in your postcode to make sure you make the right decisions for your retirement.
Questions you might like to ask a financial adviser...
- If I opt out of my company’s pension scheme, what are the implications?
- Would it be more cost-effective to build my pension fund in a work based pension?
- Will I have the same choices in a work based pension scheme as, say, a personal pension?
- How much of my spare cash should I contribute to a pension?
- What happens to my pension if I change jobs?
Take a look at our blogs on auto enrolment...
How will auto-enrolment affect me?
Viva la pensions revolution!
Will auto enrolment reduce pensions poverty?
Auto enrolment: Why pay more?