Most people tend to live over their 60s and 70s and, in some cases, struggle to get the lifestyle they want in retirement. To assist in countering the event of a shortfall in retirements savings, the government in 2008 passed legislation (I.e., the pension act of 2008) making it a legal requirement for each employer in the UK to put in place a workplace pension for employees that attains certain criteria. This is, however, known to be an auto-enrollment. 

In simple terms, auto-enrolment states that employers must automatically enroll employees in their workplace pension scheme if they attain certain criteria. Back then, employers had to option to their employer’s workplace pension scheme or may not even have an employer pension provision. This act is for all employers, even if they employ just one person. This is because they may have to provide their employees with a workplace pension.


Before the emergence of auto-enrollment, the employee was tasked with opting into their employer’s pension scheme. When auto-enrolment came into being, an employer easily set up a workplace employee pension, and the employees enrolled automatically without stress. However, employees still have the option to opt-out of their contributions for auto-enrollments. Auto-enrolments are basically carried out by the employee, the employer, and also the government. The total money gathered makes up the pension pot. 

Note that most employed people are enrolled automatically in the workplace pension, but not everyone gets in. In general, employees need to:

  • Earn at least £10,000 annually (for the current tax year). 
  • Have an age between 22years and under pension age. 
  • Work currently in the UK. 

However, if you don’t attain these criteria, there’s no cause for alarm. Your employer won’t enroll you automatically, but you can join the people’s pension. Have a good chat with your employer if you plan to join.


The main benefit of the workplace pension is that the payment into the pension isn’t done by the employee alone but by the employer and the government also. So, it’s extra “free” money in the employee’s pocket. The money gradually accumulates in your personal pension pot and can be spent whenever you retire or when you attain your normal minimum pension age.

Ethics ethical investing, we provide employee benefits advice. You can contact us for help with ESG employee benefits, acquiring, retaining, and motivating the best teams, fair market analysis, and corporate financial planning. With our services, you’ll get the best way to align group pension and corporate savings to match your goals perfectly. At Ethical, we strongly believe that a full-service, ethical package can help achieve good value for money and renew participation from your team members.

In addition, our Ethical fund managers also take an active role as custodians of shareholder voting rights. Through collaborations with decision-makers at big companies, positive change can be encouraged on behalf of ethical investors. 

Whether your choose to evaluate your current employee benefits package or prefers setting up a new scheme, our ethical advisors are readily available to advise you on the various options,

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