Some facts for you to think about before reading this article..
Facts-
-13.4m people DO NOT save sufficiently for their retirement
-Only 6% of people accept a lower standard of living in their retirement (This means 94% of people -want to continue or improve their standards of living once they have retired. The earlier you start saving the more money you are going to have when you retire thus letting you live a more comfortable life post work
- Men and women can expect to live to 82 and 85 years respectively
In the first of this 5 part series we will be talking about the benefits of Salary Sacrifice. Salary sacrifice is an agreement between the employee and the employer. The employee’s contract of employment is altered to reflect that they have agreed to exchange part of their future gross salary or bonus entitlement in return for a non-cash benefit such as an employer pension payment.
Still don’t understand? Here are some facts about Salary Sacrifice.
-Employees save on their income tax and NIC bill.
-Employers save on their NICs bill.
-Reinvesting these savings can help boost pension savings.
-Employees are no worse off in terms of net pay.
-Employers are no worse off as the cost of providing salary stays the same.
-Gains good working relationships between employers and employees.
Interested? Want to ensure you have a comfortable lifestyle once you retire without having to worry where the money is going to come from to pay the next heating bill? Join us on www.twitter.com/reevesifa and be the first to hear about our new articles on how to save yourself money. Next week we will be talking about option A which will be telling you how to increase your pension fund without paying a penny!
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