Are workplace pensions compulsory, or can I Opt-Out of Auto-Enrolment?

A new law means that every employer must automatically enrol workers into a workplace pension scheme if they:

  • Are aged between 22 and State Pension age
  • Earn more than £10,000 a year
  • Work in the UK

This is called ‘automatic enrolment’ or more commonly referred to as auto-enrolment.

Once an employee has been automatically enrolled they will be notified in writing, (usually via email), at which point they will have a 30 day window to opt out of the scheme if they wish.

Please note that an employee cannot opt out before this point and the legislation requires the employer to make the first month’s pension deduction.