For a start, auto-enrolment makes it easier for you to invest for your retirement.
Rather than you having to take steps to join a pension, most employees will be signed up as a matter of course. But perhaps the biggest benefit is that if you’re automatically enrolled, your employer will contribute to your pension as well as you. Please contact your employer to discuss voluntary joining.
You could also benefit from tax-relief on your personal pension contributions, subject to limits. More information on how tax-relief is given can be found here: moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/tax-relief-and-your-pension.
And if your employer runs a salary exchange arrangement you’ll get even more, in the form of National Insurance savings. Contact your employer for more information.
Please note that tax rules may change, and your tax treatment will depend on your personal circumstances.
Staying in or opting out - you're in control
If you're auto-enrolled, you can opt out if you want to. If you do so within a month, any contributions already paid will be refunded. If you opt out later, this money will stay in your pension. If you opt out, you will miss out on employer contributions meaning your pension savings will be smaller, however you may be able to change your mind and opt back in.
If you stay opted out, your employer will normally put you back into the pension in approximately three years. But you can again choose whether to opt out. Remember that the sooner you join the pension, the better your chance of achieving a more comfortable retirement.
