Salary Sacrifice

kimwp

@Paul_Wicker, if you are under 40 and expect to be a basic rate tax payer in retirement, take a look at LISAs- for a basic rate tax payer now and basic rate tax payer in retirement, it's better to have a LISA as there's no tax to withdraw it (after 60)- so effectively, you only pay NI. On a sipp, you'll pay some tax on withdrawal.

Paul_Wicker

Just to make things even more confusing it looks like I was right the first time. I am over 21.

Paul_Wicker

kimwp said:

@Paul_Wicker, if you are under 40 and expect to be a basic rate tax payer in retirement, take a look at LISAs- for a basic rate tax payer now and basic rate tax payer in retirement, it's better to have a LISA as there's no tax to withdraw it (after 60)- so effectively, you only pay NI. On a sipp, you'll pay some tax on withdrawal.

Sorry for being so vague. I am in my 50s.

kimwp

Paul_Wicker said:

kimwp said:

@Paul_Wicker, if you are under 40 and expect to be a basic rate tax payer in retirement, take a look at LISAs- for a basic rate tax payer now and basic rate tax payer in retirement, it's better to have a LISA as there's no tax to withdraw it (after 60)- so effectively, you only pay NI. On a sipp, you'll pay some tax on withdrawal.

Sorry for being so vague. I am in my 50s.

No worries! It makes the situation simpler at least 😊

Don't forget the min wage is going up in two days time. Afaik, anything you then get in your paycheck, you can plonk in a sipp and gain tax relief on it. (Quite nice given you won't have paid tax/NI on 1250ish of it 😊). Just don't exceed 60k going into your pensions including employer contribution, tax relief etc unless you have leftover allowance from the last three years.