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.