Salary sacrifices

edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
6 replies 1.2K views
KEHxxxKEHxxx Forumite
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edited 30 November -1 at 1:00AM in Bankruptcy & Living With It
Hi all, I will soon be applying for BR and need some advice. I currently have the below salary sacrifices come out of my wages and want to find out if the OR would be ok with these. There are monthly costs.

Union = £10 per month but can cancel if I really need to but would prefer to keep.
Critical Illness - £15 tied into this for 11 more months
Extra 5 days holiday = £23 but I use this for childcare in school holidays rather than paying for clubs as do not have family near me.

Also I only pay 3% pension and think I read somewhere that the OR will consider up to 5% is this correct and would it look bad if I changed it 2 months before BR?

Any advice or experience would be great.

Replies

  • Minkym00Minkym00 Forumite
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    Union fees are ok, but you might need to put up a strong defence for the critical illness cover. Most people don’t have it. Childcare cover is fine.

    Increasing your pension contributions so close to your bankruptcy order is very likely to be criticised and could be seen as you trying to avoid paying into an IPA.
  • KEHxxxKEHxxx Forumite
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    Does anyone else have any experience on these?
  • mwarbymwarby Forumite
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    Re the pension the minimum contribution for auto enrollment (to get employer contribution) has just gone up to 5% in April see https://www.thepensionsregulator.gov.uk/en/employers/increase-of-automatic-enrolment-contributions hopefully this would mean OR doesn't read too much into it. I agree if you chose to go above the minimum it could be an issue
  • edited 3 September 2019 at 8:01AM
    TheGardenerTheGardener Forumite
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    edited 3 September 2019 at 8:01AM
    Hi
    Nothing wrong with the pension contributions - most public sector workers pay 6%+ (including the OR's themselves) so I'd put at least that much in. I put in 8% and OR didn't even ask about it. No OR can reasonably refuse - as part of your new financial management plan - your need to ensure you have a safe retirement, changes to your pension contributions are a natural part of the 're-calibration' of your financial life around BR.
    Union - your right to be in one - you don't have to cancel.
    Nothing wrong with the holiday/childcare - make sure you explain the alternative costs of paying for childcare.
    Insurance...hummm - not sure about that one - I'd just pay it into the pension.
  • normannanormanna Forumite
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    You can cancel salary sacrifices when there is a lifestyle event e.g. perhaps bankruptcy might be counted as one - so you could speak to HR and potentially cancel your current options if needed.
  • ffacoffipawbffacoffipawb Forumite
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    normanna wrote: »
    You can cancel salary sacrifices when there is a lifestyle event e.g. perhaps bankruptcy might be counted as one - so you could speak to HR and potentially cancel your current options if needed.

    I think you can cancel or modify salary sacrifice at any time now with no need to give a reason.

    I have been doing this quite regularly for my sal sac pension with no issues at all.

    No lifestyle event required.
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