Visit us on Facebook Visit us on LinkedIn Visit us on Twitter Visit us on YouTube Visit us on Instagram
 

Important pension changes this month which will affect you

Do you remember that you were automatically enrolled in your employers’ workplace pension scheme some time ago?  Well, the payments which are made into this scheme are increasing this month, so you’ll see a change in your payslip, but it’s not all bad news.

Up until this month, the contributions into your workplace pension was at least 2% from your employer and you paid 3%.  On April 6th 2019 these rates increased, so this month will be the first pay packet monthly paid, employees will see showing the increased contribution amounts of 3% from your employer and 5% of your pay.

I know this is another deduction from your pay but remember it’s your money that’s being saved for your retirement, and you’ll be glad you did.  When you take the take break you receive into account, you’ll only pay 4%, the other 1% is tax relief from HMRC.  This means you double your money to 8% with your employer’s payment and the tax relief.  Trust me on this, it’s a fantastic deal, one I urge you to keep going.

As an additional sweetener, the amount of money you can earn tax-free, known as your personal allowance, also increases this month by £650 to £12,500, so you can now earn £1041 each month before you begin to pay income tax.

Pension planning
 
NOW IT'S TIME FOR YOU TO HAVE YOUR SAY...

I'd be really interested in knowing what you think of this article. Please comment below. Please note: This is an open discussion (meaning anyone can post). Comments may be edited or removed if inappropriate please report any spam or offensive posts to themoneyplanner@warrenshute.com.


An LPA could save your family £1000s
What to do with £25,000