personal finance

Pension: How is automatic enrolment affected if you work beyond retirement age?


It has proven to be a popular piece of legislation for most workers but it does affect older workers in a unique way. As the Money Advice Service detail, if a person is over the state pension age they will not automatically be enrolled by their employer into a workplace pension.

It will still be possible to opt into these schemes up to the age of 74 (depending on earnings) but from the age of 75 the tax benefits of pension savings stop.

Provided that the individual earns a minimum of £6,136 a year they have the right to opt in to the scheme. If they choose to opt in, the employer will be obligated to contribute to the scheme like they would for any other employee.

For people who earn less than the minimum, the employer must provide access to a pension to save if to if requested. However, the employer will not be required to contribute to it



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