Workplace Pensions
Most employees in the UK are automatically enrolled into a workplace pension. Your employer must contribute too — meaning free money towards your retirement.
Since 2012, UK employers must automatically enrol eligible workers into a workplace pension scheme under auto-enrolment rules. If you earn above the threshold and are aged 22 to State Pension age, you'll be enrolled automatically.
Employer contributions
One of the biggest advantages of a workplace pension is that your employer must also contribute. The minimum employer contribution is 3% of your qualifying earnings, on top of the minimum 5% you contribute yourself — giving a combined minimum of 8%.
Defined benefit vs defined contribution
Defined benefit (final salary) schemes promise a specific income based on your salary and service. Defined contribution schemes build a pot based on contributions and investment returns — the final income depends on how much was saved and how investments performed.