We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Pension Planning

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?

Comments

  • JoeCrystal
    JoeCrystal Posts: 3,442 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.2K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247.1K Work, Benefits & Business
  • 603.8K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.