Brits are being urged to check their pension pot for potentially thousands of pounds in savings, in addition to the State Pension. A recent report has suggested just one in four Brits are on track for a comfortable pension, and those who feel worry over their savings were urged to check their accounts. Some may find they have been saving away more than they had anticipated, leading to pension pot savings sometimes in the thousands.
Automatic Enrolment and Contributions
Most workers aged 22 and over, and earning more than £10,000 a year (or £192 a week; or £833 a month) should automatically see some of their wages transferred to pension savings. Usually, 5% of your salary will go into a pension savings pot (this is an additional pension pot, separate from what you'll eventually receive in a state pension). Your employer will also add money into the pot, an equivalent of at least 3% of your wages.
Checking Your Pension Pot
Brits who believe they are not saving into their pension pot may be surprised to learn they are, and that their employers may be matching the deposit. Advice published by the BBC urged people to check their pension pots to see whether they had been paying in without realising. Those who are wondering whether they had been automatically enrolled in a pension savings plan can check with ease.
Access and Exceptions
Money put into your pension pot can only be accessed in retirement or in circumstances such as terminal illness. If you have more than one job and all pay under £10,000 a year you will not be automatically enrolled into pension savings. For those making less than the threshold amount and hoping to save money away still can ask their employer to make contributions. Asking to join your work's pension scheme means your employer must put in some money too.
Future Changes
Changes to who can be enrolled in a work pension scheme is currently being considered by the government. A plan to lower the starting age of the pension scheme to 18 has been floated though the government says the extra cost to businesses need to be considered.
