Auto Enrolment is a workplace pension that every employer must automatically enrol workers into by law. This applies to employees who are aged between 22 and state pension age, earn more than £10,000 a year and work in the UK. A workplace pension is a way of saving for your retirement that’s arranged by your employer. They work by having a percentage of your pay being put in to the pension every payday.
In most cases the government and your employer also contribute to the pension too. This money is used to pay you an income for the rest of your life once you receive your pension in retirement.
As the state retirement age rises, it’s more important than ever to ensure that you have sufficient plans in place for retirement.