Smart Pensions

poppy_f1

juat got the info in for this scheme this morning as my employer is moving over onto this
i know its been covered a few times, however i have some questions thats not been covered
1 - as this scheme effectively reduces my salary i assume then that if going for a mortgage etc that the figure less the pension is my new salary
2 - at the moment im paying 2% of my salary into the current pension which if i get bonus's, overtime etc i pay more with the new scheme i would be better off as its taken off my salary before all extras are added on

am i reading into this rightly or wrongly?

Retired_I.F.A.

You might be , you might not be. How do you expect anyone to know what your talking about though? "smart pension" is not a recognisable type of scheme to anyone but you and your fellow employees. To the rest of us it means no more than "option a" or "plan blue"

If you currently pay a pension contribution from nett pay and the employer is doing a salary sacrifice to enhance pension contributions with the N.I. savings made from having a reduced salary and them making the pension contribution instead of you then yes you lose out on income multipliers a lender uses for mortgage purposes because your salary is less.