Join your Workplace Pension

When you join a new employer, you’re usually automatically enrolled into a workplace pension scheme. This is one of the most valuable employee benefits available – and it’s important to understand why staying in the scheme is almost always the right choice for your financial future.

Key Reasons to Join and Stay in Your Workplace Pension

Employer Contributions: Your employer is required by law to pay into your pension alongside your own contributions. This is essentially extra money for your retirement that you would lose if you opted out.
Government Tax Relief: The government adds tax relief to your pension contributions, boosting your savings. For every £80 you pay in (as a basic-rate taxpayer), the government adds £20, so £100 goes into your pension pot.
Automatic Saving: Contributions are taken straight from your salary before you see it, making saving for retirement effortless and consistent.
Investment Growth: Your pension is invested, giving your money the chance to grow over time and potentially outpace inflation.
Building Retirement Security: The State Pension alone is unlikely to provide enough income for a comfortable retirement. A workplace pension adds a vital extra layer of financial security.
Easy to Take With You: If you change jobs, you can often keep your pension pot invested or transfer it to your new employer’s scheme, so your savings continue to work for you.
Opting Out Means Losing Out: If you leave the scheme, you miss out on employer contributions and tax relief, effectively turning down free money.

Who Is Enrolled?

If you’re aged between 22 and State Pension age, earn at least £10,000 a year, and ordinarily work in the UK, your employer must automatically enroll you into their workplace pension.

Action Steps

If you are not enrolled into your workplace pension, then ask to join.
Save as much as you can, your future self will thank you!
If your employer offers salary exchange as a payment method, then it’s generally advantageous to do this. You’ll get the same amount added to your pension account, but your take home pay will increase.
If you are a higher rate taxpayer, then you may be entitled to claim additional tax relief – don’t miss out on this!
If you have not claimed higher rate tax relief previously, you may be able to go back for up to 4 complete tax years.
If your earnings are over £200,000, then your pension contributions may be restricted by the tapered annual allowance.
You can usually access pension savings from age 55 (rising to 57 in April 2028).

In Summary

Joining and staying in your workplace pension is one of the best steps you can take to secure your financial future. You benefit from employer contributions, government tax relief, and the long-term growth of your investments – all working together to help you build a better retirement.