Martin Lewis issues warning to every employee considering opting out of their workplace pension scheme
dailyrecord.co.ukMartin Lewis hosted a special edition of his Money Show Live TV programme this week focusing on workplace and private pensions.
Navigating the world of pensions can be tricky, but essential for anyone keen to make the most of their retirement years as a decent pension pot can make a huge difference to living standards in later life.
Workplace pensions have come a long way in the decade since auto-enrolment was first introduced and while seeing that extra money disappear from your pay packet every month can be hard to swallow, it’s something Martin Lewis says will reap its own rewards in retirement and is effectively a pension “pay rise”.
The founder of MoneySavingExpert.com went one step further and issued a warning to any employee currently paying into a workplace pension thinking about opting out of it - something many may be considering as a way to combat the cost of living crisis that is set to put an even bigger financial squeeze on household budgets from April.Martin explained that auto-enrolment into a workplace pension means that “most employees now save by default” so if you’re aged between 22 and State Pension age and earn over £10,000 per year then you will automatically be opted into a pension scheme.Millions of workers will then receive a pension when they retire - as early as 55 if they choose to - into which they and their employer have contributed.Under rules of the scheme, a minimum to pay into the pot is 8%, with the employer having to contribute at least 3% of an employee’s monthly salary.
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