Pension Contributions

drm174

Hi wondering if there is any way of getting round this as I can’t increase my contributions. Having to make one off lump sum payments instead but I’d like to have it taken off my wages before I get them. I get the minimum wage thing but I’m choosing to pay extra to my pension!

MK62

You can't do it using salary sacrifice........AIUI, you could do it if "net pay" was available, but if that meant switching all your contribution from salary sacrifice to net pay, that would be counter productive.
So what you'd want is to use salary sacrifice until your salary was down to NLW level, then use net pay for any contributions beyond that.......but I have no idea if Lidl's pension scheme offers that option. 
At the top of your screenshot, where the app says "Salary Sacrifice", what options does it give there, as it appears to be a drop down option box........

drm174

It does have net pay and salary sacrifice as options

Qyburn

You're better off doing as much as you can via salary sacrifice. If you switch to Net Pay you lose the NI savings.

Dazed_and_C0nfused

drm174 said:

It does have net pay and salary sacrifice as options

I don't think that combination is all that common.  Are you certain it's net pay and not relief at source?

Net pay reduces your taxable income and you get no pension tax relief.  Relief at source doesn't reduce your taxable income but the pension company adds 25% to your contribution.

MK62

drm174 said:

It does have net pay and salary sacrifice as options

Salary sacrifice is the preferred method for pension contributions, as it gives you a further NI saving above the "net pay" method.
If the options are either salary sacrifice OR net pay (ie if you can't combine them), then you may well be better off paying the maximum allowed under salary sacrifice, and then opening a low cost SIPP and pay extra contributions into that (you can set up a monthly direct debit to go out the day after payday).
Compared to switching all contributions to the net pay method, you'll almost certainly find that the loss of salary sacrifice's NI benefit would outweigh the SIPP costs. 
From the figures above it would appear that your max salary sacrifice level might be around 8%.......the NI saving from paying that 8% using salary sacrifice rather than net pay, would be about £190pa........quite a bit more than a SIPP would likely cost.

Marcon

drm174 said:

It does have net pay and salary sacrifice as options

Are you sure this isn't the terminology confusing things? Net pay is where your personal contribution is deducted from your salary before it is taxed; relief at source is where your personal contribution is deducted from your post-tax (ie net!) pay.

Given you have access to the pension provider/adviser, why not check with them?

cloud_dog

@drm174, sorry if I have missed something completely obvious here but, are you saying that you cannot increase the percentage you wish to contribute above 15%?

QrizB

cloud_dog said:

@drm174, sorry if I have missed something completely obvious here but, are you saying that you cannot increase the percentage you wish to contribute above 15%?

OP is saying that, if they were to salsac 15%, they'd fall below national minimum wage. That's not allowed (it would be illegal).

Smudgeismydog

Apart from my worrying about your remaining battery, could you do as Qyburn suggests and make the max permitted contribution under salary sacrifice and then make a personal contribution into the scheme to save opening another pension?

Albermarle

Smudgeismydog said:

Apart from my worrying about your remaining battery, could you do as Qyburn suggests and make the max permitted contribution under salary sacrifice and then make a personal contribution into the scheme to save opening another pension?

It should be possible but an advance check with the provider is strongly recommended. They may be only set up to receive employer payments via a salary sacrifice scheme.