With retirements potentially lasting 30 years or more, the state pension of maximum £122.30 a week is generally considered insufficient income to maintain a desirable lifestyle throughout the post-retirement years.

Automatic Enrolment

In 2012, the Government brought about the biggest and most radical changes to pension reform in generations with auto-enrolment. Under the new regulations, employers are now required to enrol all eligible employees into a qualifying pension plan and make contributions into it.

Eligibility criteria are as follows:

  • Employee is aged between 22 and the State Pension retirement age
  • Employee earns more than £10,000 per year
  • Employee is working, or ordinarily works, in the UK

Employers will be required to contribute a set percentage of each employee’s eligible earnings into each pension and the Government has set a minimum percentage that must be contributed in total (i.e. the employer’s contribution, the employee’s contribution and the tax relief).

Pension Funds

A pension is a tax efficient method of enhancing an employee’s income in retirement. It is increasingly being viewed as a highly desirable employee benefit.

Pension funds grow largely free of all UK taxes. At retirement, the employee can take up to 25% of their accumulated fund as a tax-free lump sum with the remaining fund being used to secure an income.

Our experienced pensions experts will help you to understand the financial implications of auto-enrollment. We will also recommend and implement the most appropriate pension scheme, and assist with your strategy for communicating the changes to employees.

For more information about automatic enrollment and its wide-reaching implications for employers and employees, please visit:, call the team on 020 8371 5232 or email: