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FOR ADVISERS ONLY

67% tax relief on pension contributions

The example below shows the additional saving that can be made by using salary exchange.

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

Taxable salary before is £125,140 and after is £100,000
Personal Allowance before is zero and after is £12,570
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 £44,940.55 and after is £29,481.45
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 £73,817.81 and after is £64,639.71

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.