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🔄 Opting In or Out of Auto-Enrolment

 

Auto-enrolment is designed to help you save for retirement without having to lift a finger. But what if you want to opt out—or opt in if you weren’t enrolled automatically? Here’s everything you need to know:

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✅ Opting In

 

You can ask to join your workplace pension scheme if:

  • You’re aged 16 to 21, or 66 to 74

  • You earn less than £10,000 a year

  • You’re not automatically enrolled

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How to Opt In:

  1.  

  2. Speak to your employer—they must enrol you if you ask.

  3. You’ll still get:

    • Employer contributions

    • Tax relief

    • The same benefits as auto-enrolled employees

💡 You can opt in at any time—even if you previously opted out.

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❌ Opting Out

 

You can opt out after you’ve been enrolled, but there are a few things to consider.

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How to Opt Out:

  1. Wait until you’ve been enrolled and receive your welcome letter from the pension provider.

  2. Follow the instructions in the letter—usually involves filling out an opt-out form or doing it online.

  3. If you opt out within one month, your contributions will be refunded.

  4. ​

What Happens If You Opt Out:

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  • You’ll stop building up pension savings

  • You’ll miss out on employer contributions

  • You’ll lose tax relief

  • You can rejoin later if you change your mind

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🔁 Re-Enrolment Happens Automatically

 

Even if you opt out, your employer must re-enrol you every 3 years if you’re still eligible.
You’ll get a new letter and can choose to stay in or opt out again.

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🎯 Final Thoughts

Opting out might seem like a quick way to save money now—but it could cost you thousands in the future.
Before making a decision, consider:

  • Your long-term retirement goals

  • Whether you can afford to miss out on employer contributions

  • Speak to us here at Clear Pensions for guidance or to ask any questions you might have.

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Disclaimer:
This guide is provided for general information and guidance purposes only. It is not intended to constitute financial, tax, or legal advice. Individuals should seek professional advice tailored to their personal circumstances before making any financial decisions.

© ClearPensions.com. All rights reserved.
This material is owned and distributed by ClearPensions.com. No part of this publication may be reproduced, stored, or transmitted in any form without prior written permission.

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