On 6 April 2018, by law, the minimum amount employers have to pay into workplace pensions goes up to 2% of qualifying earnings, while staff will now contribute 3% – making a combined total minimum contribution of 5%.
All of these people are now on the road to saving for a better retirement, but it’s only the start.
Now that they’re saving for their future, the next step in automatic enrolment is for the amount staff pay into their pensions to increase, helping them to gradually adjust to saving money for their pension pot. Employers pay more in too, growing it even further. In fact, if they want to, employers can contribute more than the minimum amount they’re required to, meaning staff don’t need to pay in quite as much – as long as the total contribution is still at least 5%.