Confused

RustyPots

I've had a company pension for years and my current company are upping their contributions if I up mine.... So I am :T

However they are asking if I want Salary Sacrifice, and if I want to re-invest my NI contributions. This is a new one on me and despite google-ing the implications of both I am non the wiser as to whether this is a good idea or not

Could someone tell me in very simple, laymans terms what issues (if any) there could be?

Thanks
RP

atush

Well, you def want salary sacrifice as this give you not only TR, but saves you NICs on the money going in. you can get that back in your salary packet, or you can add it to your pension (which is what I would choose).

However, the most interesting this is, your employer saves on NICs too on the money going in as he doesn't have to pay NICs on that part of your salary. So ask them if they will contribute some or all of those savings into your pot as well? Some do and some don't. Some will put in half etc.

But it would be hard for you to ask for this if you weren't doing it too

every pound in your pension helps with all that time for compounding.

xylophone

http://www.sharingpensions.co.uk/corporate_benefits_salary.htm


https://www.moneyadviceservice.org.uk/en/articles/salary-sacrifice-schemes

http://www.out-law.com/page-10285