Salary sacrifice provides an ideal opportunity to make pension contributions and save on National Insurance. Our easy-to-use salary sacrifice calculator helps show the financial benefits of this, and can work out figures based on a percentage of salary or fixed amount.
Start using our pension Salary Sacrifice Calculator to see how you could benefit.
Legal & General takes no responsibility for how the results from this calculator are used.
The information in this calculator is based on our current interpretation of the law and tax rates, which may change in the future. The value of tax relief will depend on your individual circumstances including where you reside (individuals resident in Scotland are subject to slightly different tax rates and those are not currently incorporated into the calculator). You can find out more about tax rates at gov.uk/income-tax-rates.
The value of any money invested in a pension plan can go down as well as up. Any money invested in a pension plan is normally tied up until retirement benefits are taken, which is usually at any time from age 55.
In just a couple of minutes, work out potential savings and new net salary after salary sacrifice.
|OUTPUTS||Before salary sacrifice||After simple salary sacrifice||SMART|
|Adjusted personal allowance||£||£||£|
|Employee income tax||£||£||£|
|Total pension contribution||£||£||£|
Additional pension contribution using SMART
Some employers interchange the terms SIMPLE and SMART for salary sacrifice. The meanings used for the calculator are below:
What is SIMPLE salary sacrifice?
Simple salary sacrifice is a way of you paying into your pension and reducing your national insurance contributions. For example:
How does SMART work?
SMART (save more and reduce tax) is a way of paying pension contributions that increases the amount paid into your pension, without reducing take home pay. For example:
This then means:
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