Workplace Pension
The pension your employer auto-enrols you into, with mandatory minimum contributions.
Since auto-enrolment was rolled out from 2012, UK employers must enrol eligible workers (aged 22 to State Pension age, earning over £10,000) into a qualifying pension scheme. The statutory minimum total contribution is 8% of qualifying earnings, made up of 5% from the employee (including basic-rate tax relief) and 3% from the employer. Many decent employers add more on top, often matching up to 5% or 6%. The Pensions Regulator oversees compliance. Schemes are usually trust-based or contract-based with providers like Nest, The People’s Pension, Aviva, Legal & General, or Scottish Widows. Opting out forfeits the employer contribution, which is rarely the right call.
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.