The basic rule

If you're aged between 22 and State Pension age, earn over £10,000 a year from one job, and work in the UK, your employer must automatically enrol you into a workplace pension scheme. You don't need to do anything — it happens by default, and your employer must tell you it's happened.

How much goes in

The legal minimum total contribution is 8% of your "qualifying earnings" (earnings between roughly £6,240 and £50,270 a year), split as at least 3% from your employer and the rest (typically 5%) from you, part of which is topped up by tax relief. Many employers pay more than the legal minimum, and some match extra contributions you make — always worth checking your specific scheme's rules rather than assuming the bare minimum applies.

Can you opt out?

Yes. You can opt out within a month of being enrolled and get back any contributions you've already made. Opt out later and you stop future contributions but generally can't get past ones refunded — they stay invested until retirement. Even if you opt out, your employer must re-enrol you automatically roughly every three years, at which point you can opt out again if you still want to.

Why opting out is usually a bad idea

Because your employer's contribution and pension tax relief are effectively free money on top of what you put in yourself, opting out means giving up both. For most people below higher-rate tax, an 8% contribution effectively costs them far less than 8% of their own pay once tax relief and the employer's share are accounted for — which is why auto-enrolment was introduced as an opt-out (not opt-in) system in the first place.

Who isn't automatically enrolled

You won't be auto-enrolled if you're under 22, over State Pension age, or earn below £10,000 in that job — though if you earn over roughly £6,240, you can usually ask to join and still get the employer contribution, even without being automatically enrolled.

Key takeaways

  • Auto-enrolment is opt-out, not opt-in — it happens automatically once you're eligible.
  • The legal minimum is 8% of qualifying earnings, with at least 3% from your employer.
  • Opting out forfeits free employer contributions and tax relief — rarely worth it.
  • You can ask to join voluntarily even below the automatic threshold, if you earn enough to qualify.