One of the best ways to boost your pensions is to use a salary sacrifice scheme if your employer offers it. It’s an easy and legal way to save on National Insurance and sometime even get generous pension contributions from your employer as they may decide to put some or all of their NI savings into your pension pot. Given that employer NI is much higher, typically 15%, compared to employee NI which ranges between 0-8%, that is a significant amount of potential savings and pension contribution.
Remember there are proposals to reform this salary sacrifice scheme to cap the limit to £2,000 and this would come in force on the 6th of April 2029. With Sir Kier Starmer resigning, I do wonder what that means for the Chancellor and her policies. We’ll have to wait and see about this one.
If you’d like to understand how salary sacrifice works, I go over an example in my video on the Income Boost YouTube channel. You can also use the free Salary & Tax estimate calculator to compare the scenarios with or without salary sacrifice, please use the JSON below and upload it and save it (feel free to rename).
If you have any issues, do let me know.
Jack w_o Salary Sacrifice_sal_cal.json (910 Bytes)
Jack w Salary Sacrifice_sal_cal.json (907 Bytes)