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What does auto-enrolment mean for me?

Auto-enrolment was officially launched last Monday and means that the government is making employers automatically enrol its employees into a company pension scheme if they are not already involved in one.

However, the new measures are being brought out in stages and are not likely to affect everyone at once. It will take approximately 5 years for everyone to be affected.

The general requirements for auto-enrolment are:

  • Being over 22 years old
  • Not currently involved in another pension scheme
  • Below state pension age
  • Earn more than £8,105 per year
  • Work ordinarily in the UK

Currently, if your firm employees more than 120,000 people enrolment will have started on Monday 1 October. Otherwise, firms of different sizes are being given staggered start dates.

If you are self-employed or past retirement, auto-enrolment will not apply.