HomeRulesEmploymentPension Regulations › Workplace Pensions
Workplace and Personal Pensions

What is a workplace pension (also called work-based or occupational pensions)? A company pension scheme is a saving plan for retirement organised through an employer.

WORKPLACE PENSIONS: UK Government operate workplace pensions to supply monthly allowances for retirees.

They provide a regular income for people once they reach the official retirement age. This welfare benefit also works to support some widows, widowers, and disabled people.

Your employer may have their own scheme set up. They might offer a plan through a specialist pension provider. Or, they can choose to use one of the government-backed schemes.

All employers must enrol their workforce (who qualify) into one of the occupational pension schemes by 2018. As a rule, all employers will introduce the ‘automatic enrolment’ system starting from April 2017.

You should consider the advantages of joining a workplace superannuation scheme. You will need to decide whether it benefits you to do so. Schemes such as these help to support your spouse or partner if you die. The company you work for must give you all the relevant information about enrolling.

Note: As a rule, your employer will give you these options within the first two (2) months of your employment.

Private or Personal Pensions Rules

Even if you receive the state support, it is wise to consider investing ‘privately’ as well. They are often called ‘money purchase pensions’ or ‘defined contributions’.

These types of private pensions could improve the standard of living when you retire. There is no limit on how many you have, or upper threshold on how much you invest, if you can afford to do so. Personal or stakeholder pensions are best suited if you:

  • Are not eligible to join your employer’s occupational scheme.
  • Enrol in addition to a workplace scheme (e.g. if you have less years to save).
  • Are self-employed or not working.
  • Want to make an investment for a child.

Workplace and Personal Pension Categories

Armed Forces Pension

ARMED FORCES PENSION CALCULATOR: Serving in the armed forces means you may get a pension. You can use the government armed forces calculator to work out and forecast the amount you might get.

The online tool is part of the MOD service. You can also apply by post by downloading the pension forecast request (form 12). The form covers the pension schemes for AFPS 05, AFPS 15, and AFPS 75 pension calculator.

COMPENSATION TRIBUNAL: The section explains the War Pensions and Armed Forces Compensation Tribunal process. Find out how to appeal a war pension decision, the deadline, and what happens at a hearing.

Early Retirement

RETIRING EARLY: Taking early retirement is a viable option for many people nowadays. So, how does retiring early affect a pension and the welfare benefits you get?

Pension Contact Details

PENSION TRACING SERVICE: You can find pension contact details online, by phone, or by post. It can help to find the pension provider for a workplace or personal pension scheme.

Pension Tracing Service
Telephone: 0800 731 0193
Outside the UK: +44 (0)191 215 4491
Textphone: 0800 731 0176
Monday to Friday: 8am to 6pm
Check call charges to UK phone numbers.

The Pension Service 9
Mail Handling Site A
Wolverhampton WV98 1LU

Note: You can also check someone else’s scheme providing you have their permission.

Pension Credit

WHAT IS PENSION CREDIT? Two elements combine to make up the income-related benefit and Pension Credit guarantee. It provides extra money for pensioners of qualifying age who may be eligible for one or both parts.

PENSION CREDIT CALCULATOR: The government Pension Credit calculator estimates what you might get. The actual amount you receive depends on your family and financial circumstances.

Workplace Pension

ABOUT WORKPLACE PENSIONS: The workplace pension guide explains automatic enrolment. Find out how it may affect you and what happens to your company pension if you change your job or opt out.

EMPLOYER OBLIGATIONS: The law on workplace pensions and employer obligations has changed. There are some things employers must do, a few they can choose to do – and several they cannot!

PERSONAL PENSIONS: The section explains the rules of personal pensions and your rights. There is further guidance on choosing a personal pension (e.g. stakeholder pensions).

TAX ON PENSION CONTRIBUTIONS: Money paid into private pensions is tax-free (within limits). But, similar limits apply to tax relief allowances on private pension contributions.

TAX WHEN YOU GET A PENSION: Many seniors ask – do you pay tax on pension payments? The section explains your tax-free allowances and how you pay tax on pensions.

TRANSFER OPTIONS: There are several beneficial reasons for transferring your pension. The section explains the benefits, risks, and transfer options in the UK or overseas.

Workplace and Personal Pensions Category Guide for United Kingdom