Post
by ben g » Wed Feb 13, 2019 12:10 am
Steve84N wrote: ↑Tue Feb 12, 2019 9:07 pm
When you sacrifice your salary into pension it does indeed reduce your reference salary for things like mortgages and possibly benefits like death in service cover.
On the plus side it's never assessed for either income tax or national insurance. That saves you 12% on top of the income tax relief you get. It also means the employer doesn't pay employer's national insurance on the part you sacrifice. Some companies will pass on part or all of that NI saving they make on to you, usually as part of the employer pension contributions they make.
It's usually a no brainer to use salary sacrifice. If the same amount goes in it doesn't affect your benefits at the other end.
Cheers for that
I had a read of some paperwork earlier and it said the earliest I can opt back in is on any date in April, so will have to wait a little longer.
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