Q&A

What is automatic enrolment? A government initiative launched in 2012 to help more workers to save towards their retirement. Bosses have to automatically enrol staff into a workplace pension scheme and they both have to make minimum contributions. Who qualifies for AE? Workers aged between 22 and state pension age, earning over £10,000. Some younger workers and those earning less may be entitled to join but will not be automatically enrolled. How much should I be saving? For a comfortable retirement pension experts recommend you put away 12% to 15% of your salary. Can I save more than the legal minimum into my workplace pension? It depends on the scheme your employer runs. Often firms let you save more and some generous bosses will match what

you put in up to a certain percentage of your salary. What’s my state pension age? Depends on when you were born. Currently it is age 65 for men and gradually increasing to 65 for women. From 2019 it will increase for men and women to reach 66 by October 2020. Then it will rise to age 67 by 2028. It continues to be kept under review so it may change. How much is the state pension worth? Those who reached their state pension

age before April 6, 2016, are on an old system that pays £122.30 per week. Those who reached it after April 6, 2016, come under the new version which is £159.55 per week for those with the full 35 qualifying years of National Insurance contributions. How can I save if I’m self-employed? If you are under the age of 40 you can set up a Lifetime ISA. While you don’t get tax relief on contributions you will get a 25% bonus on savings from the Government.