About Workplace Pensions
A workplace pension is a way of saving for your retirement that's arranged by your employer.
Some workplace pensions are called 'occupational', 'works', 'company' or 'work-based' pensions.
The value of pension and the income they produce can fall as well as rise. You may get back less than you invested.
Tax treatment varies according to individual circumstances and is subject to change.
How Workplace Pensions Work
A percentage of your pay is put into the pension scheme automatically every payday.
In most cases, your employer and the government also add money into the pension scheme for you.
The money is intended to supplement your retirement income when you start getting the pension.
You can usually take some of your workplace pension as a tax-free lump sum when you retire.
If the amount of money you have saved is quite small, you may be able to take it all as a lump sum. 25% is tax free but you'll have to pay Income Tax on the rest.
You cannot usually take the money out before you're 55 at the earliest - unless you are seriously ill.
Workplace Pensions (Auto Enrolment) and the State Pension
The pension you get from the government is called the State Pension. You get it when you reach your State Pension age.
The money you get from a workplace or other pension could make it much easier for you financially when you are retired.
Auto Enrolment is regulated by the Pensions Regulator.
The Financial Conduct Authority does not regulate Auto-Enrolment.