I’ve lost count to how many times I’ve written articles that mention that the auto-enrolment minimum is set at 5 per cent for employees and 3 per cent for employers, which add up to 8 per cent – the new lower threshold for pension contributions since April this year.
But as long as the minimum percentage for the employer is achieved, as well as the 8 per cent, it doesn’t matter who is putting the money in.
So, for example, a worker can be contributing 4 per cent, and if the employer has a double matching scheme, it will be paying 8 per cent into the individual pension pot – totalling 12 per cent.
I learn new things about pensions every day. Is it complicated? Yes. Is it challenging? Yes. But that doesn’t mean we shouldn’t try to make things as clear as they can be.
Maria Espadinha is senior reporter at FTAdviser.com