Martin Lewis warning to workers on pension auto enrolment

Pension auto enrolment applies to most employees aged 22 to State Pension age who earn more than £10,000 a year.

While many people see pension deductions as optional, Martin Lewis explained on his Martin Lewis Money Show on ITV1 that the system is designed to work in workers’ favour and is one of the few financial decisions where taxpayers get an instant return.

Credit Card Warning: when 1p costs as much as £1,000… pic.twitter.com/XTPSdPDGz8

— Martin Lewis (@MartinSLewis) February 3, 2026

He has repeatedly stressed that opting out means losing that employer contribution forever.

Under the rules, the minimum total contribution is 8% of qualifying earnings. For many workers, that employer top up plus tax relief makes pension saving one of the most efficient ways to build long term wealth, even when money feels tight.

However, rising costs have led some workers to opt out. Martin Lewis has acknowledged that short term pressures can force difficult choices, but he has cautioned that pausing pension contributions should only be temporary and reviewed as soon as finances improve.

Missing early contributions can have a disproportionate impact on retirement income because of compound growth.

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Younger workers are particularly at risk, as auto enrolment happens quietly in the background and pensions can feel remote. Lewis has urged people to check payslips, understand how much their employer contributes and avoid seeing pensions as something to “deal with later”.

Is pension auto enrolment mandatory?

You can opt out, but you lose employer contributions and tax relief.

How much does my employer really add?

At least 3 per cent, on top of your own contributions.

Can I rejoin if I opt out?

Yes, and employers must re-enrol eligible staff every three years.

Mr Lewis said: “We have auto enrolment in this country that means if you are an employee and you're earning over £10,000, you will automatically be contributing to a pension and your employer will have to match to an extent those contributions. You put five percent in, they put three percent in.”