A US government shutdown* has been triggered after a deadline to reach a funding agreement before the start of the new fiscal year (1 October) came and went without a deal.

Noisy headlines like these can feel unsettling, but history shows that markets usually take them in stride. While shutdowns can cause short-term noise, they rarely derail the bigger picture for long-term investors.¹

‍Chip explains: What is a government shutdown?: In the U.S., Congress has to approve funding for government operations. If lawmakers can’t agree on a budget before the 1 October deadline, parts of the government temporarily close until a deal is reached.‍

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What might happen in the short term?

• Data delays: Key economic reports could be postponed, creating a temporary “blind spot” for analysts and traders.
  
• Government-linked sectors: Contractors and defence companies may face small payment lags, but these tend to be resolved once funding resumes.
  
• Market sentiment: Expect some short-term jitters and reactive headlines in the news cycle, but past shutdowns haven’t caused lasting damage.

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Why investors don’t need to panic

The most important thing to note is that history is on your side. U.S. markets have been largely unaffected by previous shutdowns, with long-term returns back on track once political gridlock passes.²

Diversification also plays an important role. By spreading your money across different regions, sectors, and asset classes, you avoid being overly exposed to temporary political standoffs like this.

And most importantly, while headlines can spark short-term nerves, it’s worth remembering that the bigger picture matters far more than these short-lived disputes, so stick to the plan.  
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How Chip helps you stay steady

At Chip, we keep investing simple and diversified. Choose from over 40 investment funds – offering clear, curated choices without overwhelming you with thousands of options.

If you’re investing for the long term, the message is clear. Stay the course, let diversification do its job, and keep your goals in focus.

Head to the ‘Invest’ tab in your Chip app and see how you could put your money to work today with a tax-free Stocks & Shares ISA or General Investment Account.

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Sources:

¹ JP Morgan

² Voya

What is a Cash ISA?

A cash ISA, short for Cash Individual Savings Account, is similar to a conventional savings account. However, its distinctive feature is the exemption from taxation on the interest earned.

In each UK tax year (which runs from April to April), you can deposit up to £20,000 into a cash ISA.

ISA savings are in addition to the Personal Savings Allowance (PSA), which permits basic rate taxpayers to earn up to £1,000 in savings interest annually without incurring tax liabilities.

Higher rate taxpayers (40% tax rate) qualify for a reduced PSA of £500 per year, while additional taxpayers earning £150,001 or more do not receive any allowance.

ISA limits apply. £20k per tax year. Chip does not provide tax advice or financial advice. Tax treatment depends on individual circumstances and may be subject to change in the future.

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How do Cash ISAs Work?

If you're thinking about using a cash ISA to grow your savings, here's a brief overview of how they work:

• Cash ISAs are typically easy to open.
• You can save up to £20,000 annually, and your account accrues interest similar to a standard savings account.
• A variety of cash ISAs are available, such as easy access, regular saver, fixed rate, and junior ISAs for individuals under 18.
• Different ISAs may have varying terms, including withdrawal restrictions on fixed rate cash ISAs.
• Transferring funds from previous tax years into a higher-yield ISA account is possible. Avoid closing an ISA when switching; instead, contact your new ISA provider to facilitate the transfer.

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Interest Rates on Cash ISAs

The interest rate depends on the type of cash ISA and the chosen provider. Fixed rate cash ISAs offer a guaranteed return for a set period, whereas variable rate cash ISAs may change if the provider adjusts its interest rates.

Use our interest rates calculator to see how much you could earn. 

Cash ISA interest rates can vary between financial providers, so it’s always good to do your research with comparing Cash ISA rates.

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Cash ISA factors to think about

Before opening a cash ISA, consider the following factors:

1. Interest Rate: The interest rate determines your savings' returns. Be aware that initial high introductory rates may decrease after a year, so consider transferring your ISA funds to a higher-yielding account at that point.

2. Account Type: Choose between easy access, fixed, or regular saver ISAs based on your preferences for return and accessibility.

3. Alternative ISAs: Apart from cash ISAs, you can explore stocks and shares ISAs. These involve investing in the stock market, offering potential rewards but also bearing some level of risk.

4. Annual Limit: You can open only one cash ISA each year. Think carefully before selecting your cash ISA, keeping in mind that your total ISA savings can't exceed £20,000 in any tax year.

5. Deadline: The tax year concludes on April 5th. Any unused ISA allowance cannot be carried over, so invest before this date to maximise your tax-free benefits.

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How Many Cash ISAs Can I Have?

You can have multiple ISAs, but you can only deposit a maximum of £20,000 in a given tax year.

Be aware that transferring funds from previous years' ISAs does not count towards this limit.

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Cash ISA Rules

Cash ISA rules are straightforward:

• You can deposit a maximum of £20,000 per tax year.
• Transfers from existing cash ISAs to new cash ISAs or splitting transfers among different providers are allowed.
• To switch between cash ISA providers, you must request a transfer. If you withdraw the money yourself, you'll lose your tax-free allowance on the entire sum.
• You can transfer money from a stocks and shares ISA to a cash ISA, but this requires a form to be submitted to the new provider (but please note you can't currently do this with Chip).

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Pros and Cons of Cash ISAs

Pros of cash ISAs:

• Tax-free savings.
• No risk of capital loss compared to stocks and shares ISAs.
• Flexibility to transfer to higher-yield accounts while retaining tax advantages.

Cons of cash ISAs:

• High interest rates may drop after the first year.
• Fixed rate cash ISAs may lock your money for a set period.
• Not all accounts accept transfers from previous years, and exit fees may apply.

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Switching Cash ISAs

Switching could be considered if you find an account offering a higher interest rate. Ensure the new provider accepts transfers and inquire about any penalties for moving your funds.

You can transfer savings from both the current and previous years. It may also be possible to request a partial cash ISA transfer however not all providers can facilitate this.

Avoid closing the ISA, as this would result in losing the tax benefits. Instead, contact the new provider to arrange the transfer.

Every month, the Office for National Statistics (ONS) releases the latest figures on the UK labour market from its Labour Force Survey (LFS). While this data is obviously important news for job seekers and politicians, it is also one of the most closely watched days in the calendar for investors. 

The Unemployment Rate represents the percentage of the labour force that is without a job but is actively seeking work. It’s important to note that this figure doesn’t include everyone who isn’t working. Students, retirees, and those not looking for a job are classified as ‘economically inactive’. 

When investors are interpreting unemployment figures, they’re typically looking for three things:

1. The headline rate: Is this figure going up and down? 
2. Wage growth: Are pay packets getting bigger?
3. Vacancies: Are companies trying to hire?

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Why do investors care?

For investors, employment data is a key economic health indicator and can be a key catalyst for other key indicators. It can have a direct effect on interest rates, consumer spending and inflation. 

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The link to interest rates

This is the biggest reason the markets care about jobs data. Unemployment is a key data point for the Bank of England Monetary Policy Committee when determining their base rate of interest, which determines the cost of borrowing for other banks. 

If unemployment is low: businesses are in greater competition over staff, pushing wages higher. When wages increase, so does consumer spending, and inflation can follow suit. The Bank of England may raise interest rates to stop the economy from ‘overheating’. Higher rates are tougher on borrowers, and cause markets to dip as debt becomes more expensive. 

If unemployment rises: this suggests a potential slow down in the economy, and the Bank of England may cut interest rates to try and stimulate growth. Lower rates are often welcomed by markets and investors, as they make borrowing cheaper and encourage spending.

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The link to corporate profits

The UK economy is heavily driven by consumer spending, and this has strong links to employment.

When jobs are safe (low unemployment): People buy cars, book holidays and subscribe to services. This pushes profits up for consumer goods and services companies like airlines, high-street shops and restaurants.

When jobs are at risk (high unemployment): Consumers tighten their fists and generally stick more to essential spending. In this environment, consumer essentials suppliers like supermarkets and utilities tend to show more resilience, whilst higher end discretionary spending like luxury goods and leisure suffer.    

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The ‘good news is bad news’ conundrum

Drawing a clear link between job growth and a robust economy can be tricky, and the stock market's reaction to positive employment data is not always consistent. 

This often happens due to inflation fears. If the job market is doing ‘too well’, investors’ inflation fears deepen, and predictions of Bank of England rate increases can dampen market spirits. Markets prefer a stable number that shows a strong economy, without being so strong inflation fears creep in. 

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Read our full guide on economic indicators investors should watch out for.

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Pension death benefit rules  

The tax rules for passing on a pension depend almost entirely on the age at which you die.

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Before age 75

If you die before age 75, your remaining pension pot can usually be passed to your beneficiaries tax-free.

• Beneficiaries can usually choose to take the money as a single lump sum or as a flexible income stream.
• Currently they won’t pay Income Tax on the money they withdraw, regardless of earnings.

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After age 75

If you die after age 75, your pension can still be passed on, but it is no longer tax-free.

• Your beneficiaries will pay Income Tax on any money they withdraw.
• This money is included in your beneficiaries earnings for the year and taxed at their marginal rate.

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Pension death benefit 2 year rule 

The ‘2-year rule’ states that for death benefits to be paid tax-free (when dying before 75), the pension provider must pay the funds (or designate them to a beneficiary’s drawdown account) within two years of being notified of the death.

If the provider takes longer than two years to settle the funds, the money becomes taxable even if you died before age 75. 

Important to note:

• Beneficiaries should notify the provider promptly of the death to preserve the tax-free status of pots (where death was before 75). 
• Tax-free lump sums are limited by the Lump Sum and Death Benefit Allowance (LSDBA) of £1,073,100. This is a limit on the total tax-free lump sums paid out across life AND death. 

If a spouse, civil or cohabiting partner passes away, separate Bereavement Support Payments are available, provided the bereaved meets certain eligibility criteria.

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Pension beneficiaries  

Because pensions are held in a trust, the pension provider’s trustees have the final legal say on who receives the money. They are not legally bound by your Will.

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Expression of wish form  

An Expression of Wish (or Nomination of Beneficiaries) form is a document that tells your pension provider who you would like to receive your pension when you die.

• While the provider’s trustees ultimately have discretion, they will almost always follow your latest Expression of Wish.
• If you forget to update this form, for example, following a marriage or divorce, the trustees may pay this money to an ex-partner, as that is the last instruction they have on file.

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Rules for defined contribution pensions

Defined contribution pensions (like SIPPs and workplace pots) are the easiest to pass on.

• Your remaining pot is fully inheritable. 
• This money can be passed on multiple times, for example, to a spouse and then if any is left when they die, onto children.

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Rules for defined benefit pensions

Defined benefit (or final salary) schemes are less flexible. Because there is no ‘pot’ of cash, you cannot usually pass a lump sum to children.

• Most schemes will pay a reduced income (often 50%) to a surviving spouse or civil partner for the rest of their life.
• Some schemes pay an income to children if they are under 18 (or 23 if in full-time education).
• Once your spouse dies and children grow up, the pension payments usually stop completely.

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Changes to inheritance tax on pensions (April 2027)

Historically, pension pots have been exempt from Inheritance Tax (IHT). This made them a popular way to pass wealth to family without hitting the IHT threshold.

However, the government has announced that from April 2027, unused pension funds and death benefits will be included in the value of a deceased person’s estate for Inheritance Tax purposes.

• What’s changing? Your remaining pension savings will be added to the value of your other assets (like property and non-pension savings) when calculating if your estate owes Inheritance Tax.‍
• What could be owed? If your total estate, now including your pension, exceeds your tax-free allowances, the estate may be liable for Inheritance Tax at 40% on the excess.

You can find regulated and impartial advisers through the MoneyHelper website. Or, if you’re over 50 with a defined contribution pension you can get free and impartial guidance through Pension Wise.

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What are the biggest companies in India by market cap?

This list ranks the biggest public companies in the Indian market by market capitalisation. We’ll also highlight other key figures, such as revenue, gross profit, and 1-year return. Key facts like the company's exchange, founding year, and country are also covered.

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1. Reliance Industries Ltd. (RELIANCE)

• Market cap: $209.8 billion
• Revenue: $108.41 billion
• Gross profit: $29.94 billion
• 1-yr return: -10.23%
• Exchange: NSE
• Year founded: 1957
• Country: India

India’s largest and most valuable company, a globally reaching conglomerate with influence spanning energy, tech and consumer services. 

• Oil-to-chemicals: This is Reliance’s core and most profitable division. It operates the world’s largest single-location oil refinery, and produces everything from transportation fuel to plastics, providing huge streams of cashflow to other areas of the business. 
• Reliance Retail: India’s largest retailer with over 18,000 stores across the country, supplying its customers with groceries, electronics and fashion.
• Jio Platforms (digital services): The largest mobile network operator in India with over 450 million subscribers, offering telecoms, streaming services (JioCinema), payment apps, and other online services. 

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2. HDFC Bank (HDFCBANK)

• Market cap: $163.47 billion
• Revenue: $54.83 billion
• Gross profit: N/A
• 1-yr return: +8.76%
• Exchange: NSE
• Year founded: 1994
• Country: India

India’s largest private-sector bank by assets, operating a broad spectrum of banking services with a strong focus on both individual consumers and large corporations. 

• Retail banking: serves over 80 million customers across India with current and savings accounts, personal, car and business loans, and credit cards. 
• Wholesale banking: provides medium and large-sized businesses, corporations and institutional clients with capital loans, trade finance, cash management solutions, and investment banking services.
• HDFC merger: HDFC Bank merged with HDFC Ltd. — India’s largest housing finance company — in 2023. This gave HDFC Bank a massive book of home loans, making it a leader in the mortgage market.

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3. Bharti Airtel Ltd. (BHARTIARTL)

• Market cap: $122.05 billion
• Revenue: $20.87 billion
• Gross profit: $8.28 billion
• 1-yr return: +9.59%
• Exchange: NSE
• Year founded: 1995
• Country: India

One of the world’s leading telecommunications companies, with a significant presence across South Asia and Africa. In the Indian market, Airtel is a key rival of Reliance Jio, in mobile, broadband and digital services. 

• Airtel India: serves over 300 million subscribers with mobile services, broadband, digital TV and payment services through their ‘Thanks’ app. 
• Airtel Africa: leading telecom and money provider across 14 countries in Africa, providing mobile and data services, alongside mobile payments that allow users to transfer money, pay bills, and access other financial services. 

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4. Tata Consultancy Services Ltd. (TCS)

• Market cap: $117.99 billion
• Revenue: $28.81 billion
• Gross profit: $9.1 billion
• 1-yr return: -32.62%
• Exchange: NSE
• Year founded: 1968
• Country: India

A huge IT services and consulting company, part of the huge Tata Group multinational conglomerate. They rival big firms like Accenture and IBM as a global tech services leader.

• IT services and consulting: providing a range of tech solutions to multinational corporations globally, with their cloud infrastructure, cybersecurity, data and analytics and bespoke software development.
• Business and industry solutions: specialises in tailored industry-specific solutions, particularly within banking and financial services, and insurance — this is their largest source of revenue. They also have clients within retail, manufacturing and healthcare, helping them manage core processes like supply chain and customer relations. 

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5. ICICI Bank Ltd. (ICICI)

• Market cap: $108.28 billion
• Revenue: $32.98 billion
• Gross profit: N/A
• 1-yr return: +4.33%
• Exchange: NSE
• Year founded: 1955
• Country: India

One of India’s largest private-sector banks and a key player in the country’s financial system. A key competitor of HDFC Bank and the State Bank of India.

• Retail banking: provides millions of customers with current accounts, savings accounts, personal loans, mortgages, and credit cards. It has a strong digital product presence from its iMobile Pay app, that provides a wide array of payment and banking services.
• Corporate and institutional banking: Provides financial solutions to businesses of all sizes, including working capital finance, and term loans, alongside cash management and trade finance services to aid business operations. 

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6. State Bank of India (SBIN)

• Market cap: $90.5 billion
• Revenue: $74.06 billion
• Gross profit: N/A
• 1-yr return: +8.8%
• Exchange: NSE
• Year founded: 1921
• Country: India

India's largest public-sector bank and a cornerstone of the nation's financial system. With its unparalleled reach across the country, it is a dominant force in both retail and corporate banking.

• Retail banking: Serves a massive customer base of over 450 million people through an extensive network of more than 22,000 branches. It is a leader in personal banking, offering services from basic savings accounts and home loans to wealth management, and operates the popular YONO digital banking app.
• Corporate banking and treasury: Acts as the primary banker to many of India's largest corporations and state-owned enterprises, providing project finance, working capital loans, and treasury services. Due to its government ownership, it plays a key role in financing national infrastructure and industrial projects.

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7. Bajaj Finance Ltd. (BAJFINANCE)

• Market cap: $69.45 billion
• Revenue: $7.75 billion
• Gross profit: $4.88 billion
• 1-yr return: +28.96%
• Exchange: NSE
• Year founded: 1987
• Country: India

One of India's largest and most diversified non-banking financial companies (NBFCs). A leader in consumer finance, it is renowned for its rapid growth and use of technology to provide instant loans to millions of customers.

• Consumer lending: This is the company's core business, offering a vast array of financing options directly to consumers. It is a dominant player in providing instant loans for electronics, home appliances, and furniture at thousands of retail stores, as well as offering personal loans and credit cards.
• SME and commercial lending: Provides a range of financial solutions to small and medium-sized enterprises (SMEs) and commercial clients, including working capital loans and financing for business expansion. It also has a significant presence in lending to real estate developers. 

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8. Infosys Ltd. (INFY)

• Market cap: $67.31 billion
• Revenue: $18.34 billion
• Gross profit: $5.69 billion
• 1-yr return: -23.31%
• Exchange: NSE
• Year founded: 1981
• Country: India

A global leader in IT services and consulting, and one of the most prominent technology companies to emerge from India. It is a major competitor to other IT giants like TCS, Wipro, and Accenture.

• Digital services and consulting: Focuses on helping large businesses modernise their technology through "digital transformation." This includes moving clients to the cloud, implementing AI and data analytics solutions, and enhancing cybersecurity.
• Core enterprise services: Manages the foundational IT operations for its global clients. This involves application development and maintenance, modernising legacy systems, and outsourcing business processes to improve efficiency.

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9. Hindustan Unilever Ltd. (HINDUNILVR)

• Market cap: $66.07 billion
• Revenue: $7.07 billion
• Gross profit: $3.16 billion
• 1-yr return: -15.17%
• Exchange: NSE
• Year founded: 1956
• Country: India

India's largest Fast-Moving Consumer Goods (FMCG) company and a subsidiary of the British multinational, Unilever. Its products are a household staple, reaching nine out of ten Indian homes.

• Home and personal care: This is HUL's largest division, encompassing a vast portfolio of iconic brands. It includes soaps and skincare (Lifebuoy, Lux, Dove), laundry detergents (Surf Excel, Rin), and surface cleaners (Vim).
• Foods and refreshment: HUL is a major player in India's food and beverage market. Key brands include Brooke Bond and Lipton teas, Bru coffee, Knorr soups and noodles, and Kwality Wall's ice cream.

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10. Life Insurance Corp. of India (LICI)

• Market cap: $63.7 billion
• Revenue: $101.18 billion
• Gross profit: N/A
• 1-yr return: -11.9%
• Exchange: NSE
• Year founded: 1956
• Country: India

India's largest state-owned life insurer and a dominant force in the country's insurance sector. As a household name, it is one of the biggest institutional investors in the Indian stock market.

• Insurance and pension plans: This is LIC's core business, offering a vast range of life insurance policies, annuities, and pension plans to millions of individual customers. It operates through an extensive network of over a million agents, giving it enormous reach into both urban and rural India.
• Investment operations: LIC manages a colossal investment portfolio, making it a cornerstone of the Indian economy. It invests the premiums collected from policyholders into government securities and equities, making it one of the largest single investors in many Indian companies.

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What are the biggest companies by total annual revenue?

• Reliance Industries Ltd.: $108.41 billion 
• Life Insurance Corp. of India: $101.18 billion 
• Indian Oil Corp Ltd.: $85.38 billion 
• State Bank of India: $74.06 billion 
• Oil & Natural Gas Corp. Ltd.: $69.03 billion

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What are the biggest companies by workforce?

• Tata Consultancy Services Ltd.: 607,980
• Quess Corp. Ltd.: 441,150 
• Larsen & Toubro Ltd.: 412,970
• Infosys Ltd.: 323,580 
• Petrobras: 236,230

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Summary

Understanding a company's performance is crucial; it's how you truly know what you own. These metrics directly drive the value of your stocks and funds. When you understand these key drivers, you can navigate market changes with confidence, rather than just reacting to headlines.

Next we’ll be looking at the biggest companies in Europe by market cap.

All market data sourced from TradingView and company reports as of 30.09.2025.

Understanding the importance of diversification

Markets can move unpredictably. One asset class might be soaring while another is falling. Diversification ensures you’re not overly reliant on a single investment or sector to meet your financial goals.

For example, if your portfolio is made up entirely of tech stocks, a downturn in the tech industry could cause a sharp drop in your portfolio. But if you also own bonds, commodities, and shares in other industries, those assets may hold steady or even rise, helping cushion the blow.

Diversification doesn’t guarantee profits, but it can make the investing journey less bumpy by balancing the ups and downs.

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Diversification strategies in investing

There are many ways to diversify a portfolio. Investors often combine several of the following approaches:

• Asset classes: such as stocks, bonds, real estate, commodities, or cash equivalents.
• Industries and sectors: spreading across technology, healthcare, finance, consumer goods, and more.
• Market capitalisations: investing in both large, stable companies (blue chips) and smaller, growth-focused firms.
• Risk profiles: mixing higher-risk, higher-return assets with safer, lower-yield options.
• Tangibility: balancing between traditional financial assets and physical assets like property or gold.
  

The right mix depends on your goals, time horizon, and risk tolerance.

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Advantages of diversification

• Could reduce the risk of heavy losses from one sector.
• Could provide protection against market fluctuations.
• Could help investors achieve steadier long-term growth. 
• Offers exposure to different markets and opportunities. 

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Disadvantages of diversification

• Can limit short-term gains if one area performs very well.
• More complex and time-consuming to manage.
• May involve higher costs or fees, especially if spread out across platforms. 
• Can feel overwhelming for new investors looking for a simpler approach. 

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How to assess portfolio diversification

Holding several different investments doesn’t guarantee your portfolio is diverse, the weighting of each investment matters too.

For example, holding ten different stocks might look diverse, but if they’re all in the same industry, you’re still exposed to the same risks.

One way to assess diversification is by looking at how much of your portfolio is concentrated in one asset class, sector, or company. Tools and portfolio trackers can help you see where your money is spread and identify any gaps or imbalances.

See our full guide on portfolio management.

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Diversification summary

Diversification is one of the simplest yet most effective ways to manage risk in investing. By spreading your money across different asset types, industries, and markets, you can give yourself a smoother journey towards your long-term goals.

Next in this series: How to rebalance your portfolio, why it matters and how to adjust your investments to stay on track.

What is an employee pension contribution? 

An employee contribution is the money taken from your salary to fund your pension. Depending on how your company runs its scheme, this is usually taken in one of two ways:

• Net pay: Taken from your gross salary before tax is deducted. You get full tax relief immediately (because you don’t pay income tax on that chunk of earnings). 
• Relief at source: Taken from your net pay after tax. The pension provider then claims the basic rate tax back from the government and adds it to your pot. 

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How much should I contribute to my pension? 

While auto-enrolment rules set a legal minimum, relying solely on this may not be enough for a comfortable retirement income. Financial experts sometimes suggest two strategies to set your contribution level.

Pension contribution percentages (‘half your age’ rule) 

A widely cited rule of thumb for ‘comfortable’ retirement savings is the ‘half your age’ rule.

1. Take the age you start contributing
2. Half it
3. Match total contributions to that number as a percentage until you retire

For example:

• Starting at 22? Aim for 11% total contributions
• Starting at 30? Aim for 15% total contributions
• Starting at 40? Aim for 20% total contributions

Note: Total contributions are your contributions, your employers and tax relief.

Maximising employer matching contributions 

Many employers offer a ‘matching contribution’. For example, if you increase your contributions from 5% to 7%, the employer will also contribute 7%.

If your employer offers this and you are able to make this extra contribution, maximising it ensures you receive the highest possible contribution from your employer.

Make sure if you are able to make the extra contributions, you’re claiming the maximum amount your employer will match.

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What is an employer pension contribution? 

An employer contribution is money from your employer paid into your pension. It does not come out of your salary; it’s an extra cost to the business, on top of your wages.

Because this money is paid directly into a pension, it is not liable for Income Tax or National Insurance contributions at the point of payment, making it a highly tax-efficient way to be paid.

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How much does my employer contribute to my pension? 

Your employer must contribute to your pension if you are an eligible worker. You must meet the following criteria:

• Be between age 22 and State Pension age. 
• Earn at least £10,000 a year.
• Ordinarily work in the UK. 

The amount they pay is dictated by Automatic Enrolment rules.

Note: Even if you don't meet the criteria for automatic enrolment, you may still be able to join your employer's pension scheme voluntarily. If you earn between £6,240 and £10,000 a year, or are aged 16–21 or above State Pension age, you have the right to opt in, and your employer will still be required to contribute. 

Auto-enrolment thresholds

The government sets total minimum contribution rates for employers and employees, which are currently 8% of your ‘qualifying earnings’ (between £6,240 and £50,270).

This 8% is usually split as follows:

• 3% from the employer (the legal minimum they must pay). 
• 5% pay contributions from the employee (the amount you must pay to make up the difference).

Opting out means losing your employer's 3% contribution entirely, effectively a reduction in your overall pay.". 

Read our full guide on workplace pensions.

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Pensions tax, relief and thresholds

Now we’ve covered your contributions, it’s important to understand how the government treats that money once it’s in your pension.

A pension is one of the few places you can earn money without immediate taxation. A key benefit of a pension is tax relief, where the government adds money to your pot.

However, the generosity isn’t unlimited, and there are strict thresholds on how much you can save; and how much tax-free cash you can take as a lump sum.

Read our next guide to understand the limits you need to watch out for.

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We’re delighted to give Chip members free access to a curated selection of insightful articles from the Financial Times (commonly abbreviated to the FT). 

These articles will only be available to read in the Chip app, making this an exclusive benefit to our members. 

They’ll be refreshed every week with new relevant articles being added as the markets and news cycle moves. 

We’ll be slowly rolling this out over the coming weeks, so keep your eyes open for the first articles appearing in your app. 

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World-class financial journalism in Chip

The FT has a strong reputation for writing world-class financial content stretching back over 100 years.

They’re widely recognised as one of the world’s most influential financial newspapers, with hundreds of journalists, editors and experts generating fact-checked content, covering everything the economy touches. 

So in short, we feel we’re bringing our members the very best financial content we can find. 

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Bringing valuable insight to Chip members 

As much as we're giving our members free access to a selection of the FT’s content (which is usually behind a paywall) for their enjoyment, this is to help them make informed decisions. 

Ultimately we want to give our members access to the insight and knowledge needed to make wise choices about their wealth and investments, by leveraging the expert insight and analysis from the FT’s team. 

So with this in mind, rather than simply bringing you breaking news from the FT, we’ll be focusing on:

• Opinion pieces
• Long reads covering economic trends 
• Market insights and breaking news
• Personal finance and lifestyle stories

We hope this can help you build an informed picture about what to do with your wealth by serving a balanced mix of thought-provoking topics on the economy and markets as explained by experts.

But as we always say, we’re building Chip for you, with you. So, don’t hesitate to get in touch if you have any thoughts about articles we should add. 

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Putting editorial content at the heart of Chip

The FT content is going to be just one part of reimagining our investment product. 

You’ll notice the investments tab adding increasing amounts of editorial content and insight that better explain what the available investments are, where they fit in your portfolio, and what’s in them. 

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Just note, your capital is at risk when you invest.

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