Pension scheme via salary sacrifice?

[Gala]

This doesn’t make any sense.

Anything he pays in through a salary sacrifice scheme will be taken pre-tax. No tax and no NI.

If he pays it after then for every £5 he puts in he’s effectively paid tax and NI on it unnecessarily. How does he get more money in the pot by paying tax and NI on that?!

It does make sense but I may not have presented it very well, also to be fair I had not included the NI which you have. It depends what they can afford and if my assumption they are a 20% tax payer was correct.

I suspect his employee is doing some jiggery pokery for their benefit and for the employee it’s nearly fuck all either way.

 

[Old Prestonian]

Run the figures through a free online salary calculator.

I have an aggressive 10 year financial plan, m8. AVCs, ISAs, mortgage overpayments. I am making hay while the sun shines, so to speak.

It's just as well that a certain poster seems to be banned otherwise he would be taking issue with your capitalist values for the next 25 pages.

 

[Gala]

I use child vouchers within salary sacrifice and pay extra into our pension, so that I stay in the bog standard tax bracket.!

I don’t need child care vouchers so lash loads in the pension.

 

[Deleted User 11453]

It's just as well that a certain poster seems to be banned otherwise he would be taking issue with your capitalist values for the next 25 pages.

My parents were from a pit village mate so I learned from them that I don’t fancy living a life of penury.

 

[Old Prestonian]

My parents were from a pit village mate so I learned from them that I don’t fancy living a life of penury.

and grafters no doubt.

 

[Deleted User 11453]

and grafters no doubt.

Yes, both grandfathers worked for the NCB and my dad was a very committed factory supervisor.

My grandparents had a relatively comfortable retirement from what I saw. They lived in council houses and had NCB pensions so I do also see the benefits of ‘social welfare’ policies but they did deserve it imho after 50 years of work.

 

[the boot]

I use child vouchers within salary sacrifice and pay extra into our pension, so that I stay in the bog standard tax bracket.!

Was a big civil service scam this. Had people on 75k paying enough to do the same as you into a pension. Iirc. They stopped it like. Pity.

 

[Deleted User 11453]

Was a big civil service scam this. Had people on 75k paying enough to do the same as you into a pension. Iirc. They stopped it like. Pity.

Only 75k!!!!!

Peasants! I wouldn’t get out of my 4 poster bed for that pittance!

 

[the boot]

Only 75k!!!!!

Peasants! I wouldn’t get out of my 4 poster bed for that pittance!

Ya want to feel sorry for the building trade. Nee pensions nee union nee one bothered if we strike!!!
No pension for me. Bricks and mortar

 

[Cheesy Feet]

@Shirley Shammel might be able to advise you here..gave me some good advice the other day.

 

[Exile in Ayr]

When retirement through age or health happens a pension pot which isn't final salary is evaluated into an annuity for either lifetime or fixed term. Say a 20 year fixed term annuity may payout a third more than a lifetime annuity before the fund is exhausted. So at 66 to 86 your covered. The lifetime annuity catches up and overtakes it when your 93 so after that you lose out if you've taken the fixed term. So salary sacrifice is the key for building up your capital to exercise your options at retirement. The last important decision you have to make is wondering what your life expectancy is and probably also your spouse. My financial judgement and mobility could well have deteriorated by the time I reach 94 mind.

 

[RossTheNinja]

It won’t reduce your gross salary, I use gross salary for writing mortgages. Could be a different rule elsewhere I suppose.

Varies with provider. I was asked if I had a salary sacrifice on my last mortgage quote.