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Understanding Your Workplace Pension

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Published on 14 September 2020

When it comes to workplace pensions, it can be confusing what you’re entitled to - particularly as an agency worker. But we're here to shed some light on the all important savings scheme

With Pension Awareness Day approaching on 15th September, we thought we’d use this opportunity to highlight the importance of workplace pensions, how they work and all of the other need-to-knows.

If you’re still a little in the dark about workplace pensions, you’re not alone. It can be confusing what you’re entitled to – particularly for agency and temporary workers. But workplace pensions are vital when it comes to stashing away for inevitable retirement so it’s important you’re up to speed.
Everybody wants to enjoy a good standard of living in their older years and a solid pension pot will help to ensure care and general life costs are covered, and allow for bucket list items to be ticked!

If you are an employee aged between 22 and State Pension Age who ordinarily works in the UK and earns at least £10,000 a year, you will be automatically enrolled into a pension scheme by your employer. You must contribute a minimum of 5% of your salary into your workplace pension, with your employer contributing a minimum of 3%, making the total contribution 8%.
You or your employer can of course contribute more to your workplace pension and you can also choose to opt-out, however in doing so you will lose out on employer and government contributions so if you can afford a workplace pension, you should certainly take advantage of it!

While this all may sound a little overwhelming, it’s surprisingly very simple for workers and you don’t have to lift a finger! You will be enrolled by your employer and you’ll receive a letter from your pension provider letting you know of their service to you. Your contributions will be automatically deducted from your wage, so keep an eye out for it on your payslips – and at the end of the year you’ll receive an annual statement telling you how much is in your pension pot!

The impartial Money Advice Service website offers a handy calculator tool which can give you an estimate of the income you'll get at retirement which will include the basic State Pension.

Agency and temporary workers are entitled to exactly the same pension rights as permanent employees and will be automatically enrolled when they meet the criteria. Agency workers are normally paid on a weekly basis, so in this case the earnings threshold to meet this is £192 a week.

At Berry Recruitment, we have linked up with carefully selected pension providers and our aim is that you will receive excellent service if you choose to remain enrolled.

Understanding your pension options is incredibly important and will help you really make your money work for your future self!
For more information and professional advice, visit the https://www.gov.uk/ website or speak to a financial adviser.

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Understanding Your Workplace Pension