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    • Home • Advice • Common questions

    Is Salary Sacrifice a good option for lowering Nat. Ins contributions & increasing your pension pot?

    13 September 2021

    Question by David

    Is Salary Sacrifice a good option for lowering Nat. Ins contributions & increasing your pension pot?

    Answered by Matt Angell

    Hi David,

    It is certainly a really good option as it does save you on National Insurance and Income tax as the contribution is taken from the gross salary. If affordable it is always beneficial to maximize your contributions so you benefit from the maximum contribution from your employer.

    One thing to note though depending on the current stage of your life is it does reduce your gross salary so may affect what you can borrow in terms of mortgage.

    hope this helps,

    Thanks

    Matt

    Answered by

    Matt Angell

    Founder & Financial Planner

    I am the founder of Creative Lifestyle Planning, an independent financial planning firm that works with many families across the UK. Matt specialises in helping families to answer those all important questions they have on their mind and helping many clients gain a clearer, simply understanding of when and how to they can retire.

    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
    Risk warningAs is always the case with investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Tax treatment depends on your individual circumstances and may change in the future.
    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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