What is auto enrolment?
Auto enrolment means that legally your employer must provide you with a workplace pension scheme.
If you're auto enrolled, you'll need to start paying into a pension, but you'll also start receiving employer pension contributions.
Will I be auto enrolled?
If you’re aged between 22 and state pension age and earn over £10,000 a year, you’ll be automatically enrolled into your employer’s pension scheme and contributions will start to be paid into your pension pot.
If you don’t fall into this category, you will either be able to opt in or join depending on your age and earnings.
| Will be automatically enrolled | Can opt in | Can join |
| If aged 22 to state pension age and earn £10,000 or more per year | If aged 16 to 21, or state pension age to 74 and earn £10,000 or more per year OR If aged 22 to state pension age earning above £6,240 up to and including £10,000 per year | If aged 16 to 74 and earn less than £6,240 a year |
| Your employer will auto enrol you and contribute to your pension scheme | You can opt in if you want to join the pension scheme Your employer will then need to contribute | You can join the pension scheme if you want to Your employer doesn't legally need to contribute but they may choose to. Check with them for details |
What are the benefits?
While auto enrolment can help make sure you're saving towards a more comfortable retirement, there are other benefits to pension saving.
As with other types of investment, there is a risk. The value of your pension can go down as well as up, meaning you could get back less than has been paid in.
- A tax efficient way to save
Pension contributions you pay yourself will normally get basic rate tax relief, so every £1 that goes into the pension will cost you 80p. There's a limit on the total pension value you can build up each year, whoever pays for it. This is called the annual allowance. For most people, this is £60,000, though it may be less if you're a high earner or have taken certain types of pension benefits.
- Your employer pays in too
If you’re auto enrolled into a pension, your employer will need to pay in too. To meet the 2024/25 contribution rates, they must pay in at least 3%.
- Your pension belongs to you
All the money in your pension pot is yours to keep. So, if you leave or move employer, you’ll still have the pension pot you’ve built up. You may be able to go on paying into it, if you wish.
- Access your pension from the minimum pension age
People born after 1950 can't claim their state pension until at least 65, and often 67 or 68. With your workplace pension, you can access your pension savings from the minimum pension age. This is currently age 55. From 6 April 2028 this will be age 57 unless you have a protected pension age. To find out more visit aviva.co.uk/nmpa.
- Greater flexibility
There's more than one way to use the savings from your pension pot.
You can:
- take one or more cash lump sum(s) (subject to tax rules)
- buy an annuity to provide you with a regular guaranteed income, or
- withdraw an income more flexibly using income drawdown.
You'll be provided with more information on these options as you get closer to retirement.
Tax benefits are subject to change and their value depends on individual circumstances.
What happens once I’ve been auto enrolled?
Once you’ve been auto enrolled, pension contributions will automatically start to be deducted from your salary and invested in your pension. The amounts below are the current minimum contribution amounts for auto enrolment.
Minimum pension contributions, based on qualifying earnings*
| Date | Employer minimum contributions | Total minimum contributions |
| 6 April 2019 onwards | 3% | 8% (including 5% staff contribution) |
*This may be different from your employer's contribution structure. Please contact your employer if you need any more information.
Your pension contributions will automatically be invested in the pension scheme’s default investment option – this means you won't need to manage your investments. The default option is a long term investment strategy designed to try to reduce the risk of large fluctuations in the value of your pension in the years leading up to retirement and to prepare for taking your benefits in a certain way.
If you wish to invest elsewhere, you can choose your own investments from the fund selection available. You’ll be able to do this through your online account.
Want to make a change?
Even a small increase to your pension contributions could mean a better outcome for your retirement. Use our tools and calculators to see how you may be able to make a difference to your retirement.
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Opting out and re-enrolment
If you’ve been auto enrolled and you don’t want to stay in the pension scheme, you can opt out.
You’ll need to do this within one month of being auto enrolled - this is called the 'opt-out window’. You’ll receive information on how to opt out in your joiner's pack. Any pension contributions you have made before opting out will be refunded back to you.
If you do opt out or pay less than the minimum auto enrolment contribution levels, your employer will re-enrol you at a later date. Re-enrolment happens every three years from when your employer's auto-enrolment duties started.
You’ll be re-enrolled if:
· You opted out;
· You pay less than the minimum auto enrolment contribution levels;
· You’ve stopped paying pension contributions completely.
Once re-enrolled, you'll have the same rights to opt out of the pension scheme or pay less than the minimum auto enrolment levels.
How much is the annual allowance?
The annual allowance is the maximum you can pay into your pension and still be eligible for tax relief during one tax year. The limit for the tax year 2024/25 is £60,000.
It may be lower than this if you either:
- have a high income, or
- are over 55 and already take retirement income though flexi access drawdown or lump sum payment(s)
A high income means your 'threshold income' is over £200,000 and your 'adjused income is over £260,000, in the current tax year.
It’s your responsibility to manage your pension contributions and ensure you don’t exceed the annual allowance if you’re auto enrolled. You can either avoid exceeding the limit by opting out or pay a tax charge.
If you think this may affect you, we recommend seeking financial advice. If you don't already have a financial adviser, you can find one at moneyhelper.org.uk/retirement-adviser-directory. Financial advisers charge for their advice.
Log in to your online account
You can use your online account to look at your current pension value, view your investments and access your documents. Not all policies are on MyAviva yet.
If you have a scheme number starting with a N or a plan number starting with GS, please register or log in to MyWorkplace.
More information about auto enrolment and pensions
MoneyHelper
A good place to start is MoneyHelper, the government-backed free guidance service. The MoneyHelper service won't tell you what you should do, but they'll provide you with information to help you understand your options.