When you pay into your workplace pension, your employer must also contribute to your pension savings.
Basic rate taxpayers get 20% tax relief, higher rate taxpayers can claim 40% and additional rate taxpayers get 45%.
This means for basic rate taxpayers, putting £100 a month in your pension only reduces your actual take-home pay by £80.
Under current UK laws, workers over the age of 22 and under 66 is automatically enrolled into a workplace pension through their job.
You are automatically enrolled when you earn above £10,000, although the lower earnings limit - the point from which your earnings are used to calculate the amount of pension contributions that will be paid into a scheme - is currently set at £6,240.
