What are Salary Sacrifice Pensions?

Salary sacrifice pensions involve an agreement between an employee and employer to redirect a portion of the employee's salary into their pension fund.

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By contributing to a pension fund through salary sacrifice, employees can benefit from tax savings and potentially increase their retirement savings.

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Employers may also benefit from offering salary sacrifice pensions as they can reduce their National Insurance contributions.

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Salary sacrifice pensions are not suitable for everyone and it is important to consider individual circumstances before making a decision.

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Employees should also be aware that by reducing their salary, they may also reduce their entitlement to certain benefits such as maternity pay.

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Salary sacrifice pensions can be a useful tool for those who are looking to increase their retirement savings and reduce their tax liability.

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It is important to seek professional advice before making any decisions regarding salary sacrifice pensions.

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Overall, salary sacrifice pensions can be a valuable option for both employees and employers to consider when planning for retirement.

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