Money Saving Graham – March 2024

by Matthew Worthington - 28th March 24

Have you considered the potential benefit of the National Insurance cuts on your pension?

Regardless of your opinions on Mr. Hunt and his policies, he has presented everyone with an opportunity to potentially enhance their pension savings. The reduction in National Insurance rates presents an ideal moment to consider increasing your pension contributions.

This additional money, previously collected by the Government, holds greater value than you may initially believe.

For instance, for a yearly salary of £28,000, the National Insurance reduction in January translated to approximately £26 extra per month in your take-home pay. The cut announced for April will yield a similar increase.

If you contribute to your pension via Salary Sacrifice (found on the left-hand side of your payslip), once both reductions are in effect in April 2024, you could pay £73 more into your pension while maintaining the same net pay as in December 2023. Alternatively, if you contribute through Relief at Source (found on the right-hand side of your payslip), you could contribute £52 and still maintain your previous net pay, with an additional £13 from the Government.

This additional boost to your contributions is made possible by the tax relief on your contributions, with the real benefit lying in the compounded growth of your pension pot over time.

Though many have faced hardships through the Cost of Living crisis, unexpected boosts in your net pay from tax cuts, threshold adjustments, and salary increases offer a valuable opportunity to invest more in your future.

Even minor adjustments can yield significant results. In the examples provided, these changes could mean an extra £876 annually into your pension with Salary Sacrifice or £780 with Relief at Source pensions.

Should you wish to make an Additional Voluntary Contribution to your pension of some or all of your National Insurance savings, please request a form from

Post by Graham Wilkinson