Pensions

In most cases, you cannot access your pension before the minimum pension access age, which is currently 55 and rising to 57 in 2028. Accessing your pension early outside of these rules (except in cases of serious ill health) is known as an unauthorised payment and can result in significant tax charges of up to 55%.

Employers must automatically enrol eligible workers into a qualifying workplace pension scheme and make minimum contributions. You can set up a scheme through a pension provider such as NEST, The People’s Pension, or a commercial provider. You must assess your workforce, write to employees about auto-enrolment, and complete a declaration of compliance with The Pensions Regulator within five months of your staging date.

UK taxpayers can contribute to several types of pensions, including workplace pensions (defined contribution or defined benefit), personal pensions, SIPPs (Self-Invested Personal Pensions), and stakeholder pensions. The right choice depends on your employment status, income level, and retirement goals.