Second chance for workplace pension begins tomorrow
Workers who walked away from an estimated £200m of "free money" by choosing not to save into a workplace pension will start to get a second chance to take part in the landmark automatic enrolment scheme from tomorrow onwards.
October 1 marks three years since the introduction of automatic enrolment into workplace pensions. So far, more than five million people have been enrolled - while around half a million workers decided to opt out of the scheme. These half a million people will now start to be offered a second chance to take part in workplace pension saving - because employees must re-enrol workers who opted out and would still qualify to take part every three years.
Pension scheme Nest calculates that by opting out the first time around, the half a million workers collectively missed out on around £350m being put into their pension pots.
This estimated figure includes around £205m which would have been paid into workers' pension pots for them - had they stayed in their pension scheme - through employer contributions and tax relief.
Employees taking part in the scheme also need to make contributions to their pension pot themselves from their wages.
Workers are eligible if they are at least 22 years old and under state pension age, earning over £10,000 a year and work, or usually work, in the UK.