Starting from October 2012, up to 11 million workers will be automatically enrolled into a workplace pension. A workplace pension is a way of saving for retirement arranged by an individual’s employer.
Automatic enrolment into a workplace pension is an easy, hassle-free way for workers to save for their retirement while they are earning. Saving into a workplace pension can also help individuals to build up pension savings more quickly as they are not saving on their own. Their employer and the government (in the form of tax relief) also pay into the workplace pension and once the new employer duty is fully rolled out, an individual’s contributions are effectively doubled by the employer contribution and tax relief.