60% tax relief on pension contributions

This image shows the additional savings that can be made using salary exchange.

This table shows the position before and after the payment of the pension contribution

Taxable salary before is 125,140.00 £ and after is 100,000.00
Personal Allowance before is zero and after is 12,570.00
Employee NI contribution before is 6,381.64 £ and after is 5,878.84
Employer NI contribution before is 16,049.40 £ and after is 12,580.08
Income Tax before is 42,516.00 £ and after is 27,432.00
Pension contribution (net) before is zero and after is zero
Employer pension contribution before is zero and after is 28,609.32
Income after tax before is 76,242.36 £ and after is 66,689.16

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.