Everybody in the UK is allocated a state pension depending on their earnings and years in work with the maximum being £115.95 a week for a singular person. Due to the new laws of auto enrolment every employer who has employed anyone between 22 and state pension age must be entered into a pension plan if they earn over £10,000.
As an employee, if you pay income tax the government is entitled to add money to your work place pension in the form of tax relief. This still applies even if you donít pay income tax but will only be added if your pension plan uses tax relief at source. One example of this is if you were to pay £40 to your workplace pension, your employer would pay £30 and from this you would get £10 tax relief from the government making a total of £80 paid into your pension every month. Overtime this adds up and you are likely to have a healthy pension when it comes to retirement age.
Read our employee FAQ
here How to set up your workplace pension
A workplace pension or sometimes an 'occupational', 'works' or 'company' pension is arranged by your employer for you to save money from your wages towards your retirement pay out. The way a workplace pension works is to take a certain percentage of your wage every month, usually in your pay check and sometimes your employer contributes a certain percentage as well.
Every pension is different on when it can be retracted, usually aged 55 is the earliest date to cash out your pension. If you want to know the age you can cash out contact your employer as they will have the legal contracts and the age they have set themselves. If you are an employer wanting to set up a pension plan system we are here to help. We are the go to people for financial advice with over 25 years of successful experience advising a wide range of clients.
If you have any other requirements or need to discuss your workplace pension contact us on
01243 776 774.