Top Up Your Pension With National Insurance Cut

17th February 2024

Announced by Chancellor Jeremy Hunt in the November 2023 Autumn Statement, the National Insurance (NI) cuts are now in effect as of 6 January 2024, with further cuts for self-employed taxpayers scheduled to arrive 6 April 2024.

For those who can afford it, these cuts to National Insurance rates could present a perfect opportunity to increase your pension over time.

A basic-rate taxpayer will in theory see their income rise by up to £62.83 a month, as a result of the NI reduction. If they pay this straight into their pension, it will be worth £78.53 a month because of the 20% tax relief from the Government on contributions.

Over time, these contributions could quickly compound into something significant for your future financial security.

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