Salary sacrifice (with the intention of reducing your pay by upping your pension contrabution to avoid a little tax and national insurance ) looks like a win win for most people with a defined contrabution pension scheme. For most of the people are now in a career average pension scheme, this can reduce their pensions by hundreds of pounds and entail an equivalent cost of thousands (to buy £100 of inflation proofed pension a year. This is because the pension is calculated every year, so during the period of reduced pay they are generating a reduced pension. It can also be damaging to members who have been made redundant and pension packages offered have been cut back (because of their lower final pay)
Posted on Thursday, April 6th, 2017 at 2:02 pm in Featured, Latest News.
