Martin Lewis has revealed how low-income workers could receive thousands of pounds over the coming years.
If you're under 22 or on a low-income wage, you're probably not thinking about a pension.
But if you fall into one of these categories, there's a legal and free way to make your employer pay you more money.
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.
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A percentage of your pay is put into the pension scheme automatically every payday.
In most cases, your employer also adds money into the pension scheme for you.
All employers must provide a workplace pension scheme. This is called ‘automatic enrolment’.
Your employer must automatically enrol you into a pension scheme and make contributions to your pension if all of the following apply:
- you’re classed as a ‘worker’
- you’re aged between 22 and State Pension age
- you earn at least £10,000 per year
- you usually (‘ordinarily’) work in the UK (read the detailed guidance if you’re not sure)
However, Martin said in his recent newsletter that even if you're under 22 or at least earning £6240 you can opt into the same pension scheme.
The criteria are:
- You're aged 16 to 21 and earn above £6,240 a year
- You're aged between 66ish (state pension age) and 74 and earn above £6,240
- You're aged 22 to 66ish (state pension age) and earn £6,240 to £10,000 a year
Martin said: "Everyone who is in it effectively gets a pay rise as your employer is giving you extra money you wouldn't have got otherwise, even though it's not immediately usable.
"And everyone who is in it gets less take-home pay to get the extra money, you are saving from your current salary; so your disposable income, the amount you can spend each month, is reduced."
*Read Martin Lewis' full newsletter here.
