A workplace pension is one of the most important tools to help you save for retirement. Arranged by your employer, it’s a tax-efficient savings plan that supports your long-term financial wellbeing. In this UK pension guide, we’ll explain what workplace pensions are, how they work, and why they’re vital for your future.

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What Is a Workplace Pension?

A workplace pension is a retirement savings scheme set up by your employer. It enables you to put aside a portion of your earnings each month, with contributions also made by your employer and the government (via tax relief).

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How Do Workplace Pensions Work?

Each payday, your contribution is deducted from your salary before tax. Your employer also contributes a percentage, and the government boosts your pot through tax relief. Over time, these combined inputs help your workplace pension grow, giving you greater financial security in retirement.

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Why Workplace Pensions Matter

Workplace pensions are for the long-term. They are:

· Automatic: contributions happen without you lifting a finger.

· Boosted by employers: it’s like extra salary for the future.

· Enhanced by tax relief: your money grows faster over time.

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By starting early, even small contributions can leave you in a better place for retirement.

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How Much Will You Contribute?

Most workplace pensions have a minimum contribution level, usually based on a percentage of your salary. You can increase your contribution to give your savings a boost - a smart move if you have your sights set on a retirement filled with leisure and luxury.

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When Can You Access Your Workplace Pension?

Currently, you can begin drawing from your workplace pension at age 55 (changing to 57 from 2028). The longer your funds remain invested, the more potential they have to grow - offering you a more comfortable retirement.

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Changing Jobs? Your Pension Stays with You

Your pension belongs to you, not your job. When you switch employers, you can:

• Leave your pension where it is.
• Transfer it into your new workplace pension scheme.
• Consolidate pensions for better clarity and control.

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Salary Sacrifice: A Smarter Way to Contribute

Salary sacrifice is a cost-effective way to contribute more to your pension. By reducing your taxable salary in exchange for higher pension contributions from your employer, both you and your employer save on National Insurance. These savings can be reinvested to further grow your workplace pension.

Read our detailed ‘Salary Sacrifice Guide’ for more.

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How Thrive Supports Your Workplace Pension Journey

At Thrive, we simplify pension management with tools designed for ease and clarity.

Our platform helps you:

• View your workplace pension balance and contributions in real time.
• Adjust how much you’re paying in at any time.
• Merge previous pensions so everything is in one place.
• Access financial coaching to give yourself an edge when making smarter pension decisions.

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Start Building Your Future with Thrive

This UK pension guide shows that planning for retirement doesn’t have to be complicated. With Thrive, you can take charge of your workplace pension and build a brighter, more secure financial future.

Log in to Thrive and start making informed pension decisions today.

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