UK Pensions Explained: What You Actually Get

The full new State Pension pays 12,548 a year in 2026/27 and requires 35 qualifying years of National Insurance contributions. The triple lock guarantees it rises each year by the highest of inflation, average earnings growth, or 2.5%.

Auto-enrolment means most employees contribute at least 5% of qualifying earnings to a workplace pension, with employers adding at least 3%. This is not optional for employers.

NEST is the government-backed default pension scheme. It charges a 1.8% fee on every contribution plus a 0.3% annual management charge, which is higher than many alternatives.

Salary sacrifice lets you contribute to your pension from your gross pay, saving both income tax and National Insurance. Your employer saves NI too, and many pass that saving into your pension.

Qualifying earnings only count income between 6,240 and 50,270, so if you earn 30,000, your pensionable pay is just 23,760. Some employers use total earnings instead, which is more generous.