Meg Saksida explains the mechanics and benefits of contributing to an occupational pension scheme.
Most individuals in the UK will be eligible for the state pension. This is a monthly amount payable to the individual once they reach pensionable age (currently 66 in the UK), at a level depending on the level of the National Insurance payments that the individual has paid over their working life. At under £10,000 a year (£179.60 a week for 2021-22), taxpayers often wish to top up the state pension and to do this with either or both a private personal pension, or a pension connected to their employment, called an occupational pension scheme.
Since 2012 a program of ‘auto enrolment’ was rolled out by the government, such that by now, all employers must offer an occupational pension scheme to their employees and contribute a minimum amount to it.>