Salary Sacrifice & National Insurance Savings

[@OrangeManStan]

Are we saying that the employee is going to opt out of the company pension? Then the company puts the full amount ie your 5% plus their % into your pension scheme. Are we needing to set up a private pension scheme to do this instead of the usual company Nest style pension. And then its ok for a salary sacrifice to be paid into the private pension? Is tgat how it works, sounds complicated for the company.

[@johnporcella2375]

Would another disadvantage be for those in DB/Final Salary/Career Average pension schemes where a salary sacrifice would harm the final pension to be received?

[@simongray2484]

@@johnporcella2375 hi John, yes indeed DB scheme would be impacted as salary sacrifice will reduce earnings and therefore reduce pension benefits paid in retirement. As times goes on the number of employers (In the private sector) offering DB schemes of course is decreasing