Automatic pension enrolment usually starts at age 22, if you’re employed and earn more than £10,000 a year. But you don’t have to wait, you can ask to join from age 16 – you might be missing out on money from your employer. 

Pension auto-enrolment usually starts at age 22

If you have an employer, they must offer a pension scheme. This is called a workplace pension and lets you save for retirement. You must be automatically enrolled into a workplace pension if you: 

• are a UK resident
• usually work in the UK
• are between age 22 and the State Pension age
• earn more than £10,000 a year, £833 a month or £192 a week
• don’t already have a suitable workplace pension.

Your employer must also contribute at least 3% of your wages into your pension. This is extra money you’d lose if you decide to leave the pension scheme, called opting out. 

A pension is usually set up within three months of you meeting the auto-enrolment criteria. For more information, see our guide How pension auto-enrolment works.

You can ask to join a workplace pension from age 16

You don’t need to wait until you meet the auto-enrolment criteria to get a workplace pension, your employer must let you join if you ask between the ages of 16 and 74.

The benefits of starting a pension before age 22

Retirement will seem like a very long way off, but starting a pension early means you’ll have longer to build up enough money for a comfortable later life. You might even be able to afford to give up work at a younger age. 

A pension will typically grow your money faster than other types of savings. This is because your pension contributions are usually boosted by:  

• tax relief – the Income Tax you’d usually pay goes into your pension instead
• investment growth – your money is normally managed for you so it should grow over time.  

You’ll get extra money if you earn over £6,240 a year

Another bonus of joining a workplace pension is employer contributions. This is money your employer must pay into your pension if you join the scheme and earn over:

• £6,240 a year
• £520 a month or
• £120 a week.  

Employer contributions must be at least 3% of your wages, but they can choose to pay more. Ask your employer if they offer contribution matching – they might pay in more if you do. 

You can use our Workplace pension contribution calculator to see how much will typically be paid into your pension, based on your age and salary.    

Remember, your savings will be locked away until at least age 57

A pension is designed to give you money to live, so you can give up work and retire. This means your money will be locked away until you’re much older. The earliest you can currently access your pension money is from age 55, unless you need to retire early due to poor health. This is rising to age 57 from April 2028 and is expected to gradually increase over time.