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Pension Planning
cono1717
Posts: 762 Forumite
Hi All,
I'm looking to potentially increase my pension contribution but I wanted to clear a few things up. My current pension is 4% of everything after the first ~£6000 I earn.
If I increase my contribution does it decrease the other deductions i.e Tax, Student Loan etc?
I'm looking to potentially increase my pension contribution but I wanted to clear a few things up. My current pension is 4% of everything after the first ~£6000 I earn.
If I increase my contribution does it decrease the other deductions i.e Tax, Student Loan etc?
0
Comments
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Hi Cono1717,
If you increase your pension contribution, you will get tax relief on it. You may see your income tax reduced on payslip if your employer pays the contribution gross. If the pension contribution is paid net, then the pension scheme will reclaim on your behalf. Your NI & Student Loan Repayment are based on your gross earnings so that would not change unless you are on salary sacrifice as far as I am aware.0
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