Claiming State Pension and Salary Sacrifice

Deverell2

zagfles said:

badmemory said:

I thought you stopped paying NI at state pension age or is it different if you have to file self assessment.  Also the extra tax at 40% of £220ish is £88 a week.  Defer for 2 years makes the weekly amount over £240 (plus any increases).  Then tax if only due at 20% would be significantly lower.

Forget NI, that was my mistake, I've editted by post.

Tax while working is neutral, OP is talking about sal sac'ing the equivalent of the state pension if he/she defers it, so taxable income now will be exactly the same in both cases so tax will be exactly the same.

Then when the extra income is drawn, whether extra state pension or extra company pension it'll be taxed then so likely to be the same apart from the extra TFLS from the company pension. So the sal sac method likely to have an edge tax wise, but state pension deferral may get more (or it may not, depending how the company pension performs). 

Thanks, this has given me much to think about when considering the weekly amount after 2 years against the extra leasure I could fund now including when NI is no longer being paid.