Taking pension as salary

Gold_bullion

Has anyone who is going to exceed the £1.25m lifetime allowance asked their employer to give them the employer contribution as salary?


We have done this and the company has agreed, so long as they can deduct the extra 13.8% employer's NI from their contribution, so that for them it is cost neutral.


It means you're better off in net pay terms than paying the LTA charge, and you get to invest in an ISA now, with access to the cash whenever you want. We can also get Fixed Protection 2014 which adds another £250k to the LTA, making it £1.5m, which is worth another £62,500 extra net assuming you will exceed the £1.5m.

mania112

Where do I apply to do your job?

kingrulzuk

Where Can i send my CV

xylophone

Your company needs me.......:D

ukjoel

Our company also has the option of reducing the company share and taking it as cash. This does not allow the option of taking it all as cash but I think that they probably would allow it for the reason that you are giving.

The 1.25 million allowance does worry me a little as I can see that being brought down in the future and means a lot of guesswork if you dont want to retire early, or pay a large proportion of tax on the pension.

Triumph13

ukjoel wrote: »

The 1.25 million allowance does worry me a little as I can see that being brought down in the future and means a lot of guesswork if you dont want to retire early, or pay a large proportion of tax on the pension.

With the OBR forecasts showing no indexation of it for the forseeable future and the lib dems talking about reducing it to £1M I think you are very right to be worried.