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There are artifacts. Your marginal tax rate in the UK is 62% between $140K and $170K. £100K ($142K) take home => £66,689.16 ($94K) £120K ($170K) take h

• Mauricebranagh 5y ago
  If you hit that you normally salary sacrifice pension to drop you out of that. Also the UK has very generous matching for pensions
  • nly 5y ago
    Matching varies by employer and isn't a legal requirement. The legal minimum employer contribution is just 3% if you put in 5% and it's arguable whether 8% is enough for a comfortable retirement. For most 40% tax bracket earners (earning less than £100K) once you get beyond your employers match, there's not much benefit to a workplace pension. A £100K earner sacrificing 10% in to a workplace pension scheme is only £200/year better off than someone taking home that 10% and paying it in to a self-managed scheme (provided they reclaim the tax). Things change dramatically over £100K. Someone earning £120K and sacrificing £20K in to an employer scheme ends up £4400/yr better off than with a self-managed scheme.
    • Mauricebranagh 5y ago
      You know I meant the HMRC match and the tax treatment - not the statutory employer one. You get tax relief at your rate of income tax, which is much better for higher rate tax payers