Auto-enrolment was introduced by the government to encourage people to save for retirement. It means that all employers need to enrol employees who meet certain criteria into their workplace pension arrangements.
Vodafone automatically enrols all new employees into the Plan after three months of employment. If, after you have been enrolled into the Plan, you choose to opt out Vodafone may need to enrol you back into the Plan in the future (find out more in the answer to the question 'I've opted out, will I be re-enrolled?').
The government introduced auto-enrolment for a number of reasons:
- To encourage people to save - you're getting a regular income from Vodafone at the moment, but have you thought about where your money will come from when you retire and stop working? Automatic enrolment encourages people to save for retirement in their employer's pension arrangement by taking away the barriers to joining.
- To allow for a longer retirement - people are living longer in retirement which means that they need to save more so that they have an income that lasts for as long as they live.
- To stop people relying on the State pension. Saving into a pension will help you boost this income.
No. You can opt out as soon as you have been enrolled, but not before.
Vodafone enrols all new employees into the Defined Contribution Plan after three months of starting employment. You will receive an email from MyChoices shortly after you join the company.
If you don't want to save for retirement, you can opt out of the Plan. However, if you opt out you may be put back into the Defined Contribution Plan in the future.
If you don't want to save for retirement you can opt out of the Plan.
Every three years, Vodafone reviews the employees that are not members of the Plan. In line with legislation, Vodafone will re-enrol employees that are not members of the Plan.
If you do not want to save for retirement in the Plan, you can opt out through MyChoices. For more information please see www.vodafonepensionsupdate.co.uk/my_account/opting_out_of_the_dc_plan
Remember, if you opt out you'll be missing out on:
- an income from the Plan when you retire
- extra money from Vodafone
- income protection if you get ill.