The BBC recently reported that “ten million workers in the UK will now see a bigger chunk of their wages automatically diverted to a workplace pension.”
The new rates which took effect from 6 April mean employees, employers and the Government will all contribute more to these pension pots. That will mean less take-home pay in real terms for many people who are automatically enrolled into a workplace pension – although the change does coincide with the start of the new Financial Year (and pay rises for most) and these employees can opt-out at any time.
This change does not affect the Armed Forces Pension Scheme. Although members of the Armed Forces are also automatically enrolled and the pension is considered part of the overall pay and remuneration ‘package’ for Armed Forces personnel, you do not contribute financially towards your pension – long may that continue!
It Pays to Understand Your Pension.