I'm trying to understand what is more beneficial of the two.
I think the answer is it's better to use SS where available, but wonder if people have more insight as to why.
Salary Sacrifice
+ Money: Gain additional ER NIC deposited in Pension from employer
+ Money: lowers EE NIC as gross salary is lower
+ time: Full contribution in your fund quickly
- money: Net salary reduces: less disposable in the short term
Relief at Source
+ money: Still on full gross salary, so more disposable in short term
- effort: need to do a self assessment to get higher rate tax back
- time: need to wait for RAS 20%
- time: don't get higher rate tax back immediately, so less time in market from an investment perspective
Is there anything else to consider when weighing up which is better to use?
Moderator Message:
Moved to the "Pensions -- Practical Problems" board, as more appropriate. -- MDW1954
Moved to the "Pensions -- Practical Problems" board, as more appropriate. -- MDW1954