With Auto Enrolment upon us all, what does it mean for us humble workers.
Is it a good thing or bad?
Saving for our future has got to be good, right?
But having a small sum deducted each month is not so good for the “LIVE NOW” folks.
So what does this mean for our pay packets each month?
Below is some info, hope it helps!!
A worker who earns £20,000 a year will initially see £114.66 leave their take-home pay packet over a year
(£9.55 a month)
Along with a contribution from the employer and tax relief, this will result in £286.64 a year
(£23.89 a month) going into their pension pot
From October 2018, when the scheme is in full swing, this person will see £573.28 a year leave their take-home pay packet over a year
(£47.77 a month),
with £1,146.56 added to their pension pot over the year
(£95.55 a month)
This money will be invested.
When this person retires, they can use this money to buy an annual pension income called an annuity