Navigating the world of pensions can sometimes feel a bit like detective work. Wondering why you might not have a pension from a previous job? Here are some common reasons that could explain the mystery.
1. Age Requirements 🐣
Auto-enrolment, the process where employers automatically set up a pension for their employees, doesn't kick in until you're 22 years old. If you started working with your employer before reaching this age, you might not have been automatically enrolled into a pension plan.
2. Earnings Threshold 📐
Your annual earnings also play a role. If you make less than £10,000 a year from a single job, your employer isn't required to auto-enrol you. This means you might be left out of the pension scheme, unless you choose to opt in manually.
3. Timing and Regulations 📑
The auto-enrolment scheme was introduced by the government in October 2012. If you were employed before this scheme was launched, your employer might not have set up a pension for you. Thankfully, many employers have since adjusted their policies, but some older employees might still be affected.
4. Opting Out 🙅🏽
Sometimes the choice is yours. If you opted out of your workplace pension scheme at any point, whether for personal financial reasons or otherwise, you wouldn't have a pension from that particular job. Remember, opting out also means missing out on contributions from your employer, which are valuable for growing your pension pot.
5. Contract type 📑
If you were a contractor, temporary worker, or on a zero-hours contract, you might not have qualified for auto-enrolment even if you earned over £10,000. So if you worked a job through an agency this could apply to you.
6. Waiting periods ⏳
Many employers have a 3 month waiting period before enrolling new staff, so very short-term jobs might not result in a pension.
Not Sure? Penny Can Help 👌
If all of this information leaves you scratching your head, don't worry! Penny is here to help you figure out your pension situation. Our consolidation and finding functions during signup will have already been completed. If we haven’t helped locate a missing pension, you can use the “Additional Search Tools” tab on your settings page or drop our team a message on live chat. If you are still having issues finding it, remember to consider the points above.