Who gets auto-enrolled
Auto-enrolment is the law that makes employers put eligible staff into a pension automatically — you don't have to do anything to join. Your employer must enrol you if you:
- are aged 22 to State Pension age,
- earn more than £10,000 a year from that job (the "earnings trigger", 2026/27), and
- work in the UK.
Earn less, or younger/older? You can still join
If you earn between £6,240 and £10,000, or you're aged 16–21 or over State Pension age, you aren't auto-enrolled — but you can ask to opt in, and your employer still has to pay their contribution. If you earn under £6,240 you can ask to join, though the employer doesn't have to contribute. In other words, asking to join is almost always worth it.
You're enrolled separately for each job. If you have more than one job and each pays over £10,000, you may be enrolled in a pension for each one.
How much goes in — who pays what
The minimum total contribution is 8% of your qualifying earnings. Qualifying earnings are the slice of your pay between £6,240 and £50,270 a year (2026/27) — not your whole salary. The 8% is split like this:
| Who pays | Minimum |
|---|
| Your employer | 3% |
| You (including tax relief) | 5% |
| Total minimum | 8% |
So if your employer pays the 3% minimum, you make up the rest to 8% — but part of your share is the tax relief the government adds (more on that below), so it costs you less than it looks. Crucially, 3% is only the floor: many employers pay more, and some work out contributions on your full salary rather than just the qualifying-earnings band — both of which mean more in your pot. Check your payslip or scheme paperwork to see what your employer actually does.
Tax relief — the government tops up your pot
Tax relief reflects that you'd normally pay income tax on the money you put into a pension. For a basic-rate (20%) taxpayer, £100 in your pension pot effectively costs you only £80 — the government adds the other £20. Higher-rate (40%) taxpayers can claim extra relief through Self Assessment.
Schemes give relief one of two ways: "relief at source" (the provider claims the 20% and adds it to your pot) or "net pay" (your contribution comes out before tax, so the relief is automatic in your pay). One quirk to know: if you earn below the £12,570 personal allowance and you're in a net-pay scheme, you can miss out on relief you'd get in a relief-at-source scheme — MoneyHelper explains how to check.
Should you opt out? The honest answer
You're free to opt out — but it's worth being clear about what you give up. When you opt out you lose:
- your employer's contribution (at least 3% — money you only get if you stay in), and
- the government tax relief on top of your own payments.
That's why opting out is often described as turning down free money. Over a working life the employer match and tax relief add up to a very large amount — far more than the slice that comes out of your take-home pay. For most people who can afford it, staying in is the better move.
The honest balance for a tight month
Pensions are for the future — but a roof, food and keeping the lights on come first. If you genuinely
can't cover essentials or priority debts right now, prioritising those is reasonable, and no one should feel guilty about it. But before you opt out to free up a few pounds, make sure you're not leaving easier money on the table: check you're claiming everything you're entitled to with
our benefits checker or
the Better Off scan, and if debt is the pressure, get free help at
our debt guide. You may find you don't need to opt out at all.
Can I get my money back if I opt out?
Yes — but only if you're quick. Opt out within one month of being enrolled and you get a full refund of your own contributions (not the employer's). Opt out after that one-month window and your contributions stay invested — you can't get them back until you can normally access the pot, usually from age 55 (rising to 57 from April 2028).
Opting out isn't forever — you'll be re-enrolled
By law your employer must automatically re-enrol eligible staff roughly every three years. So even if you opt out now, you'll be put back in around three years later — and you can opt out again then if you still want to. It's a built-in nudge to keep checking whether staying in has become affordable.
The pot is yours — and it follows you
A workplace pension isn't your employer's money once it's paid in — it's yours. A few things worth knowing:
- It's portable. When you change jobs the pot stays yours. You can leave it where it is or, sometimes, combine old pots — though combining isn't always best, so it's worth taking guidance first.
- You can usually access it from age 55 (rising to 57 from April 2028), normally with the first 25% tax-free.
- NEST is the government-backed scheme many employers use as their default — a perfectly solid place for your money.
- Lost an old pot? If you've worked for several employers you may have workplace pensions you've lost track of — the free official Pension Tracing Service finds them.
A workplace pension is on top of, not instead of, the State Pension — the two together are what most people retire on.
Do this now
Three two-minute checks before you decide
- Check your payslip for the pension line and the employer contribution — and whether it's on qualifying earnings or your full salary.
- If money's tight, check your benefits and debt options first — you may free up money without giving up the employer match.
- Get free, impartial guidance from MoneyHelper before opting out of any pension.
This is general information, not advice
SortedUK is not a financial adviser
This guide explains how workplace pensions and auto-enrolment work in plain English — it is
general information, not financial advice for your own situation. Pension decisions depend on your income, age, other savings and plans, so before opting out or moving a pot, get free, impartial guidance from
MoneyHelper (the government-backed money and pensions service) or speak to a
regulated financial adviser. Anyone who
cold-calls you about your pension is breaking the rules — pension cold-calling is banned and it's a classic scam pattern. Suspicious? Run it through
our scam checker.
Free UK support
- MoneyHelper — free, government-backed money and pensions guidance: 0800 011 3797. The place to go for an impartial steer on your own pension.
- The Pensions Regulator — the regulator for employers' auto-enrolment duties (it's aimed at employers, not for personal advice).
- Citizens Advice — free help understanding your pension, pay and benefits.
- GOV.UK — the official rules on workplace pensions and auto-enrolment.
- Pension Tracing Service — find lost workplace pensions free: our guide.
Related guides