What is auto enrolment?

Auto enrolment is part of the pensions reform changes that the government introduced to make it easier for people to save for their retirement. Under the reforms, all employers have to automatically enrol workers who meet certain conditions, and those that aren’t already in a pension scheme that meets minimum requirements, into an auto enrolment pension scheme. They’ll also have to allow other workers to join such a scheme.

An auto enrolment scheme can be:

  • a defined contribution scheme with a minimum contribution level; or
  • a defined benefit or hybrid scheme providing a minimum benefit level.

In both cases, other conditions have to be met.