If you’re automatically enrolled into a workplace pension, you might decide to opt out of the scheme. But this could mean you lose valuable retirement benefits.
Can I opt out if I don’t want to join my employer’s workplace pension scheme?
If you qualify, but don’t want to join your employer’s workplace pension scheme, you can opt out after you’ve been set up in your employer's workplace pension.
When you opt out, your employer also stops contributing to your pension.
Find out more about eligibility and automatic enrolment in our guide Joining a workplace pension scheme
How can I opt out of my workplace pension scheme?
You need to ask the pension provider for an opt out form so you can opt out of auto enrolment.
Your employer must give you the contact details for the pension provider if you ask for them.
You need to complete and sign the pension scheme opt out form, and return it to your employer (or the address given on the form).
The pension provider might allow you to opt out online.
Once you’re enrolled into the pension scheme, there’s a one-month timeframe in which you can opt out. This is called the opt out period. It starts from whichever date is the later of:
- the date you received a letter from your employer with enrolment information
- the date your active membership started.
If you opt out, you’re treated as if you never joined the scheme, and any money you’ve paid in will be refunded.
You only get money back from the contributions you’ve made. You won’t get the contributions your employer might have made, or any tax relief.
If you decide to leave the scheme after the opt out period, you’ll instead be ‘stopping active membership’.
Contributions you and your employer have already made will usually be held in the scheme until you can begin taking the money out of your pension pot, unless the scheme’s rules allow you to get a refund.
You can’t usually start taking money from your pension pot until you’re aged 55 or over. This rises to age 57 in 2028.
Need more information on pensions?
Call our helpline free on 0800 011 3797 or use our webchat. One of our pension specialists will be happy to answer your questions.
Our help is impartial and free to use, whether that’s online or over the phone.
Opening times: Monday to Friday, 9am to 5pm. Closed on bank holidays.
How long does opting out last for?
An opt-out from the pension scheme usually lasts up to three years.
If you’ve opted out or stopped contributing to the scheme, your employer must automatically re-enrol you into the scheme at a later date if you qualify.
If you’re still not ready to join the scheme or start paying contributions again, you can decide to opt out of auto enrolment for another three years.
If you change your mind, you can speak to your employer about opting in to the scheme at any time.
While you can ask to re-join the scheme at any time, your employer only has to address any requests once every 12 months.
Employers must automatically enrol eligible workers who have opted out or stopped contributions every three years. This is because your circumstances might have changed. And saving into a workplace pension to build up money for retirement might now be the right thing for you.
Find out more about eligibility and automatic enrolment in our guide Joining a workplace pension scheme
What benefits could I lose if I opt out?
If you're thinking of opting out, or stopping contributions, you might be missing out on valuable benefits. These include:
- contributions your employer makes into your pension pot
- tax relief (money that would have gone to the government as tax goes into your pension pot instead)
- any benefits that your scheme might pay if you fall ill and are unable to continue working before reaching your retirement date
- any benefits the scheme might pay to your dependants if you were to die.
You can use our webchatOpens in a new window to speak to a pension specialist if you want more information.
To find out what benefits you might lose, check the booklet about your scheme. You should have received one, possibly by email, when you joined.
If you haven’t received this, or can’t find it, you can ask your employer or the pension provider for another copy.
