An employers guide to the pension salary sacrifice cap


Now the decision to cap the benefit of salary sacrifice on pensions at £2,000 a year has been confirmed; UK employers will need to plan for upcoming changes. So, what can be done to preserve the benefit that currently saves many employers tens of thousands of pounds a year? Here’s some key considerations. First of all, there’s no need to rush or panic. The changes aren’t due until 2029 and with a general election in August 2029 at the latest, it might not even come into effect at all.

Pension pitfalls putting employers at growing risk of errors

Employers are facing growing pension risks as rules become more complex and the minimum wage continues to rise. These risks are often hidden, but they can lead to financial loss, compliance breaches and reputational harm if left unchecked. We’re seeing more organisations doing the right thing when it comes to wider benefits like family leave, sabbaticals and salary sacrifice. But these positive changes can have unexpected effects on pension calculations. When processes don’t keep up with change, mistakes start to creep in.

The cost of cash

Higher rate taxpayers with £30,000 in a taxable cash account earning 4.5% interest could earn £1,350 a year - but gain just £400 with tax and inflation factored in. Higher rate taxpayers only need just over £11,000 in non-ISA cash savings to trigger a tax bill on their interest. The same £30,000 saved into a pension could deliver a gain of over £21,000 in a year for a higher rate taxpayer, thanks to tax relief and investment growth

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Lifestyle Actuary

Dalriada Trustees Limited (Dalriada), one of the largest providers of professional trustee services to pensions schemes in the UK, has today announced the appointment of Sarah Brough as a professional trustee.

Lights Camera Actuary

For the next few months Zoe Bolton will be talking to the senior actuaries in these firms, getting a brief insight into their career paths and visions for the future. This month Zoe interviews Shil Patel the UK Managing Director at Dynamo Analytics

Travelling Actuary

This month's Travelling Actuary takes us to the iconic Boston to experience New England at it’s very best.

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