What is auto enrolment?
Auto enrolment is a way of making sure employees can access a workplace pension scheme
Auto enrolment is a government initiative
We all need money when we retire. All UK employers must automatically enrol their qualifying employees into a workplace pension scheme if they are not already in a qualifying scheme. This is known as automatic or auto enrolment.
Auto enrolment is a government initiative
We all need money when we retire. All UK employers must automatically enrol their qualifying employees into a workplace pension scheme if they are not already in a qualifying scheme. This is known as automatic or auto enrolment.
Who pays money into the pension scheme?
If you have been automatically enrolled, the total minimum contribution rate is currently 8%. This means that, as a minimum, you have to put in 5% and your employer must add at least 3% of your qualifying earnings (the earnings your pension contributions are usually based on when you contribute to a pension scheme). If you have not been automatically enrolled then there is no legal minimum amount you have to pay. Your employer is not required to pay in this situation but must facilitate payments from your salary to the pension scheme.
Who pays money into the pension scheme?
If you have been automatically enrolled, the total minimum contribution rate is currently 8%. This means that, as a minimum, you have to put in 5% and your employer must add at least 3% of your qualifying earnings (the earnings your pension contributions are usually based on when you contribute to a pension scheme). If you have not been automatically enrolled then there is no legal minimum amount you have to pay. Your employer is not required to pay in this situation but must facilitate payments from your salary to the pension scheme.
Do you qualify for auto enrolment?
Usually, yes. It depends on your age, earnings, and where you usually work – but most employees will qualify. Auto enrolment was created to help as many employees as possible to save for the future. You should meet the criteria for auto enrolment if you are:
- usually working for your employer in the UK
- from age 22 but younger than the State Pension age
- earning over £10,000 per year (that’s £833 a month or £192 a week)
Do you qualify for auto enrolment?
Usually, yes. It depends on your age, earnings, and where you usually work – but most employees will qualify. Auto enrolment was created to help as many employees as possible to save for the future. You should meet the criteria for auto enrolment if you are:
- usually working for your employer in the UK
- from age 22 but younger than the State Pension age
- earning over £10,000 per year (that’s £833 a month or £192 a week)
Will you be auto-enrolled if you're under 22 or over state pension age?
For the tax year 2024-2025, if you’re earning more than £10,000 a year but younger than 22 or over the state pension age, then you won’t be enrolled into a scheme automatically. But you can still tell your employer you’d like to join.
When you turn 22, you should be enrolled in your employer’s scheme if you earn more than £10,000 a year.
Will you be auto-enrolled if you're under 22 or over state pension age?
For the tax year 2024-2025, if you’re earning more than £10,000 a year but younger than 22 or over the state pension age, then you won’t be enrolled into a scheme automatically. But you can still tell your employer you’d like to join.
When you turn 22, you should be enrolled in your employer’s scheme if you earn more than £10,000 a year.
Instant changes to your
pension savings
You won’t need to check in on your pension savings every day. They're designed to be a long-term investment. But if you do need or want to get an update, then the secure Smart Pension makes it easy to get that information straight away. There’s no need to make a phone call or to wait for a letter.
Our app will give you real time information about your pension savings. It puts your future into the palm of your hand.
Instant changes to your
pension savings
You won’t need to check in on your pension savings every day. They're designed to be a long-term investment. But if you do need or want to get an update, then the secure Smart Pension makes it easy to get that information straight away. There’s no need to make a phone call or to wait for a letter.
Our app will give you real time information about your pension savings. It puts your future into the palm of your hand.
Instant changes to your
pension savings
You won’t need to check in on your pension savings every day. They're designed to be a long-term investment. But if you do need or want to get an update, then the secure Smart Pension makes it easy to get that information straight away. There’s no need to make a phone call or to wait for a letter.
Our app will give you real time information about your pension savings. It puts your future into the palm of your hand.
Instant changes to your
pension savings
You won’t need to check in on your pension savings every day. They're designed to be a long-term investment. But if you do need or want to get an update, then the secure Smart Pension makes it easy to get that information straight away. There’s no need to make a phone call or to wait for a letter.
Our app will give you real time information about your pension savings. It puts your future into the palm of your hand.
Smart Pension's fund choices
Smart Active Impact Bond Fund
Aims to invest in bonds which have an environmental impact and generate financial return above the global green bond market, taking into account Environmental, Social and Governance issues when selecting investments.
Smart Active Impact Equity Fund
The aim of this fund is to invest in equities which provide growth over the long term (being a period of five years or more) and invest in companies that contribute to the achievement of the United Nations’ Sustainable Development Goals.
Smart All Stocks Index – Linked Gilts Index Fund
Aims to track the return of the FTSE Actuaries British Government Index Linked All Stocks Index, which features UK government bonds with returns linked to the Retail Price Index (RPI).
Smart Annuity Fund
Aims to improve potential outcomes for investors likely to purchase fixed annuities by providing a diversified exposure to assets that reflect the broad characteristics of investments underlying a typical traditional level annuity product, incorporating Environmental, Social and Governance (“ESG”) considerations as part of the investment strategy.
The fund cannot provide full protection against changes in annuity rates for individual members as these also depend upon a number of other factors (e.g. changes to mortality assumptions).
Smart Cash Fund
Aims to maintain capital and provide a return in-line with money market rates by investing in a range of money market securities denominated in sterling.
Smart Ethical and Climate Fund
Aims to track a filtered index, which excludes companies that operate in industries that breach certain ethical criteria.
Smart Global Bond Index Fund
Aims to invest in different types of bonds in the UK and overseas, taking into account Environmental, Social and Governance factors.
Smart Growth Fund – Higher Risk
This fund carries a higher risk of fluctuation to your savings than other growth funds available but has the potential for high growth, though this is not guaranteed.
Smart Growth Fund – Lower Risk
This fund carries the lowest risk of fluctuation to your savings than other growth funds available but also reduced likelihood of a high return. It may be suitable if you are concerned about volatility.
Smart Income Fund
Aims to provide long-term investment growth up to retirement, and to support flexible income during retirement, taking into account Environmental, Social and Governance factors.
Smart North America Equity Index Fund
Aims to provide broad exposure to companies in the North American equity market, taking into account Environmental, Social and Governance factors.
Smart Sharia Fund
Aims to create long term appreciation of capital through investment in a diversified portfolio of securities which meets Islamic investment principles.
Smart Sustainable Growth Core
Aims to take advantage of Environmental, Social and Governance factors by investing more in companies which score well in these areas.
Smart Sustainable Growth Fund
Aims to take advantage of Environmental, Social and Governance factors by investing more in companies which score well in these areas to mitigate Environmental, Social and Governance risks and benefit people and the planet by having a moderate allocation to investments contributing to solutions for environmental and social issues.
Smart Sustainable Growth Plus
Aims to take advantage of Environmental, Social and Governance factors by investing more in companies which score well in these areas to mitigate Environmental, Social and Governance risks and benefit people and the planet by having a high allocation to investments contributing to solutions for environmental and social issues.
Smart UK Equity Index Fund
Aims to provide broad exposure to the UK stock market, taking into account Environmental, Social and Governance factors.
Smart World (ex UK) Developed Equity Index Fund
Aims to provide broad exposure to large and mid-cap companies in the developed world, excluding the UK, taking into account Environmental, Social and Governance factors.
Smart World Emerging Markets Equity Index Fund
Aims to provide access to key emerging economies taking into account Environmental, Social and Governance factors.
