Reasons your pension might not exist
27 Jan 2024
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 employments 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.
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. By finding and consolidating your old workplace pensions into one easy-to-manage account, we make keeping track of your retirement savings simple and straightforward. Download Penny, and let us do the detective work for you.
