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Fiona will be automatically enrolled into the workplace pension by her employer

Fiona is aged 27 and earns £37,000 a year working for a recruitment consultancy company. She is not already a member of her employer’s workplace pension. As Fiona earns more than £8,105 a year and is over 22, this means her employer has to automatically enrol her into the pension and pay into it. She will also get a contribution from the government in the form of tax relief.

Raj will not be automatically enrolled into the workplace pension by his employer

Raj is aged 20, earns £17,000 a year working for a building contractor and is not already a member of his employer’s workplace pension. As Raj is under 22, his employer does not have to automatically enrol him into the workplace pension. However, Raj can ask to join the pension. If he does, his employer has to enrol him and pay into it. He would also get a contribution from the government in the form of tax relief.

Peter will not be automatically enrolled into the workplace pension by his employer

Peter is aged 42 and earns £4,500 a year working as a cleaner for a small charity. He is not a member of the charity’s pension. Because Peter earns less than £8,105 a year, his employer does not have to automatically enrol him. However, Peter can ask his employer to put him into a pension, and if he does, his employer has to do it. As Peter earns less than £5,564 a year, his employer does not have to pay into it, but can choose to do so. He might also get a contribution from the government in the form of tax relief – he would need to check with whoever runs his pension scheme.

Julie is already a member of her employer’s workplace pension

Julie is aged 59 and earns £45,000 a year working for a publishing house. Julie is a member of her employer’s pension. Her employer pays into it, the government pays into it through tax relief and the pension meets the government’s new standards. As she is already in the workplace pension, Julie will not be automatically enrolled.

Tax relief – what it is

Tax relief means some of the money you earn, instead of going to the government as income tax, goes into your pension instead.

Workplace pension – what it is

A workplace pension is a way of saving for your retirement arranged through your employer. It is sometimes referred to as a ‘company pension’, an ‘occupational pension’ or a ‘works pension’.

More useful links

• Enrolling into a pension at work

• Workplace pensions - how your situation affects you