in Pensions, annuities & retirement planning
3 replies 362 views
Hi, I will have some excess funds available from April, option 1 should I increase my work pension contribution and reduce my payable tax or option 2 is to out this in a private pension and gain the additional 25% from the government or option 3 I put this in to a savings but not necessary an ISA. Any advice would be appreciated,
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Also could you clarify how you contribute to your work pension pot, by salary sacrifice ( for example)
I would suggest that using salary sacrifice was the better idea, as you get the same amount of relief in option 1 you never pay the tax in option 2 you pay the tax and reclaim it. if you are a higher rate tax payer the sacrifice is easier + doing option 1 by salary sacrifice means you save NI on the amount sacrificed (sometimes the higher contribution triggers some additional company contribution)
The comment above is true though we don't really know enough to comment on your situation but the above is what I am doing maximising salary sacrifice and reducing tax and NI
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