Unlocking Hidden Pension Value: The Power of Salary Sacrifice
- 63% of savers don’t know about salary sacrifice pensions – a £1.9 billion missed opportunity across the UK.
- Salary sacrifice allows employees to exchange part of their salary for increased pension contributions, creating National Insurance savings for both employer and employee.
- These savings can boost take-home pay or be reinvested into the pension – with no extra cost to the employer.
- A business with 200 employees earning £35k each could save £48,000 per year using salary sacrifice.
- Starting early matters – a 20-year-old could gain nearly £20,000 more in pension contributions by State Pension Age.
- Common barriers include lack of awareness, perceived complexity, and misunderstanding of impact on pay or benefits.
- WPD simplifies the process from scheme review to implementation, helping businesses and staff benefit fully.