Building retirement security through workplace pensions is a valuable benefit for employees and employers alike. At Blueprint Financial Solutions, our occupational pension advisers assist clients in Gloucestershire and across the UK with understanding and maximising occupational pension schemes and auto-enrolment options.

How occupational pension schemes work

Every payday, a percentage of the employee’s pay is deducted automatically from their salary or wages and invested in the scheme. The employer also contributes to the scheme on the employee’s behalf as does the government in the form of tax relief.

Two types of scheme

In a ‘defined contribution scheme’, the employee’s retirement income is based on the contributions made, whereas in a defined benefit scheme, the employee’s pension income is based on his or her salary and length of service with the employer. Most occupational pension schemes are defined contribution schemes.

What happens if the employer goes out of business?

Whether the scheme is managed by insurance companies or by the employer, the pension funds are not available to creditors of the employer, so employees’ pension pots should not be affected if the employer goes bust. If the scheme is a trust-based scheme, employees will still get their pensions, although not as much because the scheme’s running costs will be paid out of members’ pension pots rather than by the employer.

Auto Enrolment

Under ‘Automatic enrolment’ rules, any employer (with at least one member of staff) must automatically enrol every employee between the age of 22 and State Pension age and earning in excess of £10,000 a year into a ‘Workplace pension scheme’.

Contribution costs

The minimum contribution for employers is 3% of the employee’s earnings, whilst employees are obliged to contribute a maximum of 5% of their earnings before tax.

!

ADVICE ON AUTO ENROLMENT PENSIONS IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

 

With Blueprint Financial Solutions, you can gain clarity on occupational pensions and auto-enrolment requirements, ensuring you make the most of your workplace pension benefits. For clients in Gloucestershire and across the UK, we provide straightforward advice on pension contributions, tax relief, and long-term retirement planning. Contact our team today to discuss your options.

London Stock Exchange

Value Move %
FTSE 100
8608.48 -26.319 -0.305
FTSE 250
19649.63 58.771 0.3
FTSE 350
4692.25 -11.03 -0.235
FTSE All Shares
4640.5 -10.97 -0.236
Dow Jones
42225.32 235.359 0.561
Nasdaq
17601.047 151.156 0.866

Currencies

Value Move %
0
1.196 -0.004 -0.294
GBP/NOK
13.545 -0.007 -0.049
0
12.847 -0.024 -0.186
GBP/USD
1.306 0.006 0.436

Biggest Movers

Value Move %
SEGRO
795.6 +52.4 +7.05
easyJet
477.8 -18.1 -3.65
!

Market data is subject to a 15-minute delay.

Requestcall back

Tell us where you are in your life so we can help you.

or call us
0800 644 6402