Salary Sacrifice??

ceh209

Does anyone know of a tax/pay calculator with salary sacrifice options built in?

My pension contributions are done through salary sacrifice and I'd like to check if I'm paying the right tax, obviously without it it doesn't quite work!

Credit_Jake

ceh209 wrote: »

Does anyone know of a tax/pay calculator with salary sacrifice options built in?

My pension contributions are done through salary sacrifice and I'd like to check if I'm paying the right tax, obviously without it it doesn't quite work!

I think http://www.listentotaxman.com/ has a salary sacrifice built in, you have to put a percentage sign after the amount or it'll just deduct the amount not a percentage if that makes sense.

GibbsRule_No3

Does any one know anything about using the taxable part of a redundancy package towards a final salary pension? 39 years in service, thus 40 months until work pensions are due. Another 5 before State pension kicks in. With the package if I could actually have the amount I'm being offered without the amount of tax being taken off, I might not need to find work in this depressed market. My Union does have a one off, free meeting with a Financial advisor but I would need to know what questions and paperwork to take into that meeting. I am single and have no dependents if that info helps.

Monetmonetmonet

My position is the companys pays 7%, I sacrifice 5%, then the company claim back 12.5% NI of 5% and sticks that in my pot also, so I end up with 12-13% into my pension pot each month.

Over the years now have a pot of £100K, recently looked at my pension statement and noticed the provider takes 0.4% and the collection of funds take a further AMC of 1.2%, thats £1,600 for doing very little!! and thats every year until I retire!!!!

Now in the process of staying in the company scheme but doing a part transfer of 99% to a private SIPP and doing my own tracker fund. SIPP provider has a fixed price £45 a quarter + £1.5 per share buy with a regular investment. Figure I can track the FTSE100 with 8 top shares at a cost of £12 a month. So all in will get a SIPP which costs about £300 to manage and tracks the FTSE which is what any fund does essentially.:T a saving of £1300. Simples!

mrperfect

Hi
I'm a real pension novice, I have been in a company pensions scheme 15 years (Final Salary). My company is closing it down completely and offering us a salary sacrifice scheme. Im really confused as what to do?

Can any one help?

Thanks

dunstonh

mrperfect wrote: »

Hi
I'm a real pension novice, I have been in a company pensions scheme 15 years (Final Salary). My company is closing it down completely and offering us a salary sacrifice scheme. Im really confused as what to do?

Can any one help?

Thanks

Normally in these cases the firm will make the services of an IFA available to you. Have they done that?

Jackie_from_Derby_UK

I have a question. My employer "suggests" every couple of years or so that we re-arrange our pensions, which are a Group Personal Pension. I have realised that this means that the pensions adviser gets a nice little fee every couple of years. So I am feeling rather cheated, and I wonder if there is any compensation scheme if I have been missold a pension? How do I know that the pension I was on is no longer any good for me?

Advice please!

daryldo

Hi


I have been looking into my own pension and my company offers ss as well as the normal way, I have used listen to the tax man and the standard life for this could someone just check I have worked this out right, I have wrote it really simple as its only way I understand it (well it is simple to me lol)


For simplicity we will use paid 12 times a year example, all figures have been used for net as these is the figure that matters to me anyway


Example of 20000 per year salary paying 100 every month towards pension


old way


net normal salary – £1310.35 per month


if we put 100 per month into our pension this gives us


new net - £1230.35 (difference of 80 net)


costing us 960 a year but actually getting 1200 a year in to pension fund (240extra)


example 80 plus HRMC 20 equals 100 (20% percent tax relief)






new way salary sacrifice ( salary will become 18608.71 )


net normal salary – £1310.35 per month


if we put 100 into our pension this gives us


new net 1230.35 (80 net difference) ( salary will become 18608.71 )


costing us


960 a year but actually getting 1391.28 (391.28 extra)


giving an extra 151.28 compared to old scheme


*note above does not include any additional saving passed on from employer which could equal 1569.36 in stead of 1391.28 an extra 178.08 per year as I do not know at this stage what they are doing, but they do pay 6.5% of my salary into my pension which is 1300 plus or so a year anyway.


If hopefully I have done this right I can see that the ss is off benefit in this example but could some clear up, at what point does the reduced nic effect state pension in later life for example second state pension, I have read through this post but don't quite understand how do I work out the loss compared to gain in ss


Many Thanks Jim

jamesd

Jackie_from_Derby_UK wrote: »

I have a question. My employer "suggests" every couple of years or so that we re-arrange our pensions, which are a Group Personal Pension.

I assume that by re-arrange you mean review the investments you hold in the pension, rebalance and adjust based on which areas have the best prospects for the coming year or two. That is good advice and annual or twice a year is good if you have an IFA of your own.

Jackie_from_Derby_UK wrote: »

I have realised that this means that the pensions adviser gets a nice little fee every couple of years.

How does the adviser get a fee? That is, where does the money for the fee come from?

Jackie_from_Derby_UK wrote: »

So I am feeling rather cheated, and I wonder if there is any compensation scheme if I have been missold a pension? How do I know that the pension I was on is no longer any good for me? Advice please!

The basic advice to do it is fine, not enough information yet about the fee to know whether it's good or bad for you. The company might even pay the bill.

The pension wrapper itself is probably fine and it's unlikely that you've been mis-sold. Is your employer adding any money to the pension? If yes, then mis-selling is very unlikely.

The investments held within the pension are the most important part. We could give opinions about those if we knew what they are.

jamesd

Daryldo, yes, that looks right for one way of doing it, the way that keeps the final pay the same. There's another way that keeps the pension contribution the same and changes the final pay up a little.