pension advice and child benefit Q

spendinglikemad

Just started a new job where my employer pays into a personal pension pot for me and I am unsure how much extra I should pay
I am currently 42
- I have a 15/60 final salary pension froxen
- an opted out serps pension

I earn 55k with a 7k ca allowance (trying to find out whether the 62k is paid as salary) plus potentially 10% bonus

I just opted out of receiving child benefit but reading up on it I should take it still and sacrifice some salary into pension instead but how do I know whether its worth doing or not and how much ?

I probabaly need to pay an advisor dont I!!

SLM

xylophone

http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/9781037/Child-benefit-how-to-beat-the-tax.html
http://www.telegraph.co.uk/finance/personalfinance/9651876/Sacrifice-salary-to-avoid-child-benefit-cuts-experts-say.html
http://www.guardian.co.uk/money/2012/nov/16/beat-taxman-keep-child-benefit

atush

No, you probably need to do the maths ;-)

Yes, car allowance counts as salary (well at lest my OH's does). So you would need to pay more than 2 K to get SOME CB, and 12K to get it all. There is a sliding scale. But this takes into acct NO other income. Do you have savings? Are they in ISAs?

Do you have a spouse? Do they work? Can you afford to not get CB, or can you afford (ie keep your current living standards) if you earn 50K plus CB?

zygurat789

spendinglikemad wrote: »

Just started a new job where my employer pays into a personal pension pot for me and I am unsure how much extra I should pay

SLM

Does this pension scheme have a limit?
Does the amount your employer pays for you depend upon what you put in yourself?

spendinglikemad

xylophone wrote: »

http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/9781037/Child-benefit-how-to-beat-the-tax.html
http://www.telegraph.co.uk/finance/personalfinance/9651876/Sacrifice-salary-to-avoid-child-benefit-cuts-experts-say.html
http://www.guardian.co.uk/money/2012/nov/16/beat-taxman-keep-child-benefit

Thank you I will have a look at those!
SLM:j

spendinglikemad

atush wrote: »

No, you probably need to do the maths ;-)

Yes, car allowance counts as salary (well at lest my OH's does). So you would need to pay more than 2 K to get SOME CB, and 12K to get it all. There is a sliding scale. But this takes into acct NO other income. Do you have savings? Are they in ISAs?
Yes some ISAs

Do you have a spouse? Do they work? Yes he works and earns approx 50k with car included

Can you afford to not get CB, or can you afford (ie keep your current living standards) if you earn 50K plus CB?

We can probably afford not to take it when you take into account our joint salaries howevere just trying to be prudent for old age if its worth putting more away into a pension now (which I gues yes is always the answer to that!) plus we pay so much tax now that anything we can claw back would be good!!!!

spendinglikemad

zygurat789 wrote: »

Does this pension scheme have a limit? dont think so

Does the amount your employer pays for you depend upon what you put in yourself?

no they have told me how much employer will pay in and I just need to work out how much additional contribution I want to make

atush

If your OH earns too, and you can afford to put in 12K to your pension, do it. Now, as 40% tax relief is fantastic for your pension.

grey_gym_sock

and it's more than 40% tax relief, when you also take into account the child benefit you get to keep.

waccamole

Strikes me that this measure could have the side effect of prompting a significant proportion of £50K+ earners to substantially increase their pension contributions.

grey_gym_sock

waccamole wrote: »

Strikes me that this measure could have the side effect of prompting a significant proportion of £50K+ earners to substantially increase their pension contributions.

perhaps that's the government's real plan