As from October 2012, large employers started to enrol their workers into a workplace pension to encourage more people to save for their retirement. Other employers will follow sometime after this, over several years. Here at PayStream, we will enrol you as from October 2013 if you are an employee of PayStream My Max and meet the eligibility criteria for auto-enrolment.
If you are an employee of PayStream My Max 2 or PayStream My Max 3, you will have a later start date and will be enrolled in 2014. We will be writing to you nearer the time to let you know when this will happen. Page 1 of your payslip will show you which PayStream My Max company you are employed by if you are unsure.
We have chosen NEST as our pension provider. Read our article 'The basic facts of pension auto enrolment' to find out more.
The aim is to help more people have another income on top of the State Pension, when they retire. The State Pension is a foundation for your retirement. If you want to have more, you need to save during your working life.
The government is getting employers to enrol their workers automatically into a pension at work so it is easier for people to start saving. You can opt out if you want to, but if you stay in you will have your own pension which you get when you retire.
What's more, if you stay in, the government will also contribute to your pension through tax relief. Tax relief means some of your money that would have gone to the government as tax, goes into your pension instead.
Unlike other ways of saving, being in a workplace pension therefore means you're not the only one putting money in.
Minister for Pensions Steve Webb said:
"This is the start of the biggest shake-up in the pensions system in a generation. If we don't act now, tomorrow' pensioners could find themselves poorer in their later lives".
"Not only will we get millions of people saving with a contribution from their employer, many for the first time, but this will also mean a massive shift towards a new culture of saving".
To find out more about what enrolment into a workplace pension means for you, visit www.gov.uk/workplacepensions. You can also contact our Compliance Team at firstname.lastname@example.org.
If you'd like to know more about NEST you can visit their website at www.nestpensions.org.uk.