Pension savers could get free 100% savings boost – act before tax year end | Personal Finance | Finance
Saving into a pension can be difficult, as Britons reckon with the cost of living in the present. However, it is often considered as vital for preparing for later life financially.
There are various ways to save for retirement, but workplace pensions are often popular.
This is because when eligible individuals save into a workplace pension, their employer is also legally required to contribute.
People must be automatically enrolled into a workplace pension if they:
- Are classed as a ‘worker’
- Are aged between 22 and state pension age
- Earn at least £10,000 per year
- Usually work in the UK
READ MORE: Martin Lewis explains exactly why standing charge is going up
The earlier a person starts saving into a pension, the better, experts often state.
This is because compound interest can mean a pension grows more over a longer period of time, leaving Britons with more for retirement.
Saving little and often is also less laborious than putting large amounts into a pension closer to retirement.
Mr Selby added: “For most people, staying in a workplace pension remains a no-brainer.
“Anyone with spare cash should consider making the most of their available pension allowances before the tax year ends on April 5.”
When a person is automatically enrolled into a workplace pension, they must be provided with key details.
These include the date they joined, the type of pension scheme and who runs it, as well as how much the employer will contribute.
Employers cannot encourage or force individuals to opt out of a workplace pension, although it is possible to opt out.
From April 2019, the minimum an employer can pay in is three percent of a person’s salary.
Individuals pay a minimum of five percent, although they can increase their contributions if they so wish.
The Government website adds: “In some schemes, your employer has the option to pay in more than the legal minimum.
“In these schemes, you can pay in less as long as your employer puts in enough to meet the total minimum contribution.”
