Auto-enrolment is linked to the new national pension scheme that is set to be introduced in 2012 called NEST.

The term refers to the process in which all employers have to offer a company pension scheme and all employees are automatically enrolled into the scheme under NEST.

Auto-enrolment will be gradually introduced from October 2012 and September 2016, starting off with larger companies, followed by medium-sized employers and finally smaller businesses though firms are free to set up the scheme earlier than the deadline.

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Auto-enrolment started this week, initially only for employers with more than 120,000 employees but it will be gradually rolled out to almost all employers by 2018.

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The government’s new pension scheme, auto-enrolment starts today for the UK’s biggest companies and it is hoped more than four million people will be using it by May 2014.

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