What you need to know, and what you must do

New laws will see up to eight million workers without a pension automatically signed up to one by their employer over the next few years, starting in October.

Firms must enrol anyone aged over 22 and below State pension age, and who earns at least £8,105 a year. And they must pay towards the pension.

A second group of workers includes staff earning at least £8,105, but who fall outside the age limits, and those earning between £5, 564 and £8,105. They will not be signed up automatically but have the right to join a pension and to have their employer pay in too.

Contributions are a percentage of your pay – including overtime and commissions – between £5,564 and £42,475. Payments start low: employee and employer will each contribute one per cent of pay. From October 2017, this rises to three per cent from the employee and two per cent from the employer. From October 2018 onwards contributions will be five per cent from the employee and three per cent from the employer.

Workers can opt out. But even if they do so, they will be automatically signed up again every three years and will have to repeat their opt-out.

Act now. If you think your company offers a more generous scheme to which you do not yet belong – find out and join, in case your employer reduces future benefits under the new arrangements.