Auto enrolment is a new pension reform law introduced by the government [Pension Act 2008]. Under the new pension legislation all employers must offer a workplace pension scheme and automatically enrol eligible workers. This law has been introduced to encourage and help more people to start saving for their retirement due to increase strain on the State benefits system. It is vital that people start to contribute to a pension scheme at an early stage in their working lives to provide them with extra savings that will top up State pension.
Auto enrolment has been operational since October 2012, beginning with larger employers and slowly progressing to smaller employers. By 2018, all employers will have to automatically enrol eligible workers unless they opt out.