Pension Advice

WagonWheeler

Numbers:
Would like to retire at 55
only need 1k a month on retirement
57k basic salary can go up to 65k with overtime
35 years old
Soon to start contributing from 3% to 20% to my work Smart Pension
Employer will match 11%
current pension pot 20k
Married with soon to be two kids (wife doesn't work)
House paid for

Question:
I recently paid off my house ( I know for some of you this wasn't the best idea, but it's something I wanted to do for security)
Now my next goal is to increase my pension pot, while also trying to maximise on tax savings.

Based on my figures above, I was reading that by reducing my salary via pension contributions I should be able to then claim child benefit as it reduces my income. Are there any other things I am missing that could help me with my pension?

I'm happy to increase my contributions if that helps with anything. Sorry for the really vague question just trying to figure out my next move from here and what numbers I need to consider.

atush

well you at least wont to put enough in that you get yoru employers max contribution. Is 11% their max?

if i were you i'd put in at least 5%, but taking your salary down to at least 50K for the CB, and even further to the threshold would be ideal as it would take you out of HRT. if you can afford it. as 100 into yoru pension costs you onlly 60 fro your own contributions, and you are a bit behind with only 20K at 35.

Make sure the CB is in your wifes name so she gets the NiCs for her SP.

xylophone

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/reduce-high-income-child-benefit-charge/

Marcon

Particularly clear explanation here (even though it is supposed to be for advisers, it's actually extremely easy for a layman to follow): https://adviser.royallondon.com/technical-central/pensions/state-benefits-pension-manuals/child-benefit-avoiding-the-tax-charge/

You and your wife do of course have up to date wills including guardianship details for your children if anything happens to you both (sorry - horrid thought, I know).

AlanP_2

Current salary 57-65k.

Wife doesn't work.

No mortgage, 2 children on the way.

Need £1k per month from age 55


That is a very large difference between today's expenditure level (pre-children) and retirement level. Where is all your money going now if you can both live on £12k a year?

Not criticising your life / spending choices and admirable planning efforts but that contrast just stood out for me.