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    • Jaguar Skills
    • By Jaguar Skills 7th Aug 18, 11:14 AM
    • 427Posts
    • 62Thanks
    Jaguar Skills
    Private Pension or Workplace via Salary Sacrifice?
    • #1
    • 7th Aug 18, 11:14 AM
    Private Pension or Workplace via Salary Sacrifice? 7th Aug 18 at 11:14 AM
    Hi all,

    Just a brief question. I currently pay in a lump sum into a private pension each month and then deposit larger sums during my bonus periods.

    In November 2017 my company confirmed that salary sacrifice would be available with the NI savings passed on to the employee. I opted into this as soon as I could but didn't increase any contributions.

    The notes from the salary sacrifice email are here:

    Please note that if you would like to pay over any above the standard 2% into your pension you can. There are 2 ways this can be done. You can increase your 2% contribution to a specified amount, and or/you can make lump sum contributions. This can be done with or without opting into salary sacrifice, although salary sacrifice is the more tax efficient way of paying into the pension. Please note that to simplify the administration process of salary sacrifice, it will only be possible to pay in lump sums twice per year (through March and September pay runs).

    My question relates to whether it would be more beneficial to increase my workplace contributions or my keep my personal ones as they are with the lump sums in March/September going into workplace or personal.

    Does it also make a difference what the fees are? My PP is a low cost platform but my workplace one is St James Place which I know is fairly high cost.

    If there is any other details that are needed, to give me an informed decision, please shout. Thanks in advance.
Page 4
    • Jaguar Skills
    • By Jaguar Skills 10th Aug 18, 12:18 PM
    • 427 Posts
    • 62 Thanks
    Jaguar Skills
    The 40k has to include any employer contribution such as %age matchin or them giving back their NI.
    Originally posted by MallyGirl
    Thanks is there a way of easily working out if I was going to go over the 40k AA?

    I am still not 100% sure of what the downside to doing this is, is it just that you lose tax relief?
    • Jaguar Skills
    • By Jaguar Skills 10th Aug 18, 12:19 PM
    • 427 Posts
    • 62 Thanks
    Jaguar Skills
    1) refers to nation minmum wage.


    Your employer has to pay you minimum way by law, so if doing salary sacrifice you must receive this.
    As your a high earner might not be an issue in your case.


    If for example someone earned 40K per annum, they cannot salary sacrifce 40K as they have to received minimum wage, so their contribution limit would be more like 27.5K.
    Originally posted by lisyloo
    I don't think this will apply as basic is 80k.
    • MallyGirl
    • By MallyGirl 10th Aug 18, 12:37 PM
    • 2,873 Posts
    • 7,877 Thanks
    MallyGirl
    Thanks is there a way of easily working out if I was going to go over the 40k AA?

    I am still not 100% sure of what the downside to doing this is, is it just that you lose tax relief?
    Originally posted by Jaguar Skills
    I can log in to my company pension account and see all the contributions. Otherwise I think you have to just do the calculations.
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