1. What Is Workplace Pension Contribution?

Workplace pension contributions are mandatory payments made by employers and employees under auto-enrolment rules. For 2024-25, the minimum total contribution is 8% of qualifying earnings, with at least 3% coming from the employer.

2. How Does The Calculator Work?

The calculator uses the pension contribution formula:

Where:

• \( Qualifying Earnings \) — Pensionable earnings between the lower and upper thresholds
• \( Total \% \) — Minimum 8% for 2024-25 tax year

Explanation: The calculation determines the total pension contribution based on qualifying earnings and the selected contribution percentage.

3. Importance Of Pension Planning

Details: Regular pension contributions help build retirement savings, benefit from employer contributions, and take advantage of tax relief on pension savings.

4. Using The Calculator

Tips: Enter qualifying earnings in pounds, and the total contribution percentage (minimum 8%). All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are qualifying earnings?
A: Qualifying earnings are pensionable earnings between £6,240 and £50,270 for the 2024-25 tax year.

Q2: Who pays the pension contribution?
A: The total contribution is typically split between employer and employee, with the employer paying at least 3%.

Q3: Can I contribute more than 8%?
A: Yes, many schemes allow higher contributions, which can provide greater retirement benefits.

Q4: Is there tax relief on pension contributions?
A: Yes, pension contributions benefit from tax relief, making them a tax-efficient way to save for retirement.

Q5: When can I access my workplace pension?
A: Typically at age 55 (rising to 57 in 2028), but this depends on your pension scheme rules.