On behalf of a group of people, the charged levied by the provider may be lower, as the provider is dealing with bulk business. Therefore, the employer may able negotiate better terms than you would get as an individual.

Your employer will normally contribute a percentage of your salary to your pension plan, improving the amount you will receive when you retire.

As your salary increases automatically, so does yours and your employer’s contribution.

Your contribution will attract Tax relief. For every £1.00 you pay into your pension, the Government will add the basic rate of tax to your pension plan.

Your employer will normally deduct your contribution from your pay and send it to your pension provider. Therefore, you don't have to worry about contributing yourself.

Disadvantages

Currently, you cannot take your pension fund before 50. The age limit will increase to 55. In most cases, should you decide to move your pension fund from one provider to the next, you are likely to a incur charges levied against your pension fund.

Women will receive a different amount to men at retirement.

There is no guarantee of the amount you will receive when you retire.

The range of investment funds available can be limited. This will depended on the scheme you join.