Smart Pension

jem16

robin61 wrote: »

No. It worked well for me. I get 40% tax relief and I get 12% NI relief I only expected to get 2% but I assume my company must be sharing their relief with me.

That's good if it works out that way for you and many do get some/all of their employer's contribution.

However not all do and the NI saving goes down quite drastically.

Plus I have managed to easily keep my child benefit as I am putting a substantial amount into the AVC reducing the gross pay on my P60.

Yes but as I said, this is a benefit for making pension contributions whether it's gross pay, net pay or salary sacrifice. It's not exclusive to salary sacrifice whereas the NI savings are.

The NI savings are great but once you start getting into higher rate tax territory, the saving becomes less of an attraction especially if your AVC option isn't that great and you have better potential elsewhere.

green_man

As stated above - More than likely this is very good thing, but unless you can provide some details about your scheme and your salary it's difficult to say how good in your case.

In my case my company runs a Smart pension where by they give 6% boost to any contributions (half their NI saving). This being on top of their standard contributions and matching and NI contributions that I save. So a very good thing.