Business

7 reasons to update your workplace pension

  • On April 6th 2019, auto-enrolment (AE) minimum contributions into workplace pensions will rise from 5% of earnings to 8%
  • That is typically split between the employer (3%) and the employee (5% – including 1% in tax relief from the government)
  • AE was introduced in 2012 to encourage more people to begin saving for their retirement
  • Please the attached ‘guide to AE’ for more details
  • Find out more about workplace pensions here

By Alistair McQueen, Head of Savings and Retirement at Aviva

  1. You don’t need to do anything. If your contributions need to rise to match the new minimum, this will be done for you automatically
  2. Your employer and the taxman may have to contribute more to your workplace pension, so it could be like getting a pay rise that goes into your pension
  3. Saving more now could allow you to retire sooner, or have a higher standard of living when you do retire
  4. The pot of money you save into your workplace pension – including your contributions and those from your employer and taxman – belongs to you. No one can use it without your permission.
  5. Based on today’s rules you can access your workplace pension savings from age 55 (if you want to)
  6. Even though you may be asked to contribute more, increases to the personal tax allowance and the national living wage, and any pay rise you may be receiving could cushion the impact
  7. More than 10 million people in the UK have started saving into a workplace pension through auto-enrolment so you’re among a growing group of people who are preparing for their future

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Editor in chief Suzi Dixon studied at Bournemouth university, went away for a while to work at The Daily Telegraph, then moved back to the sunny South coast for a quiet (er) life. Bournemouth News & Info is her website and she is assisted by the fabulous Fred From France in all things geeky and technical. Hire us to make your website, too, if you like.

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