Abacus Daily Debt News

Salary Sacrifice calculator ‘to help’ debtors

Britons could benefit from making use of Legal & General’s new online Salary Sacrifice calculator, a tool that highlights the effect of reducing remuneration as well as the amount that could be set aside for increasing pension payments without affecting take-home wages.

This suggests that people concerned about falling into debt in their retirement may be able to lessen their current anxiety levels.

Jamie Vale, business development director for savings at Legal & General, noted that the service is becoming popular among many companies.

"[It can] increase pension contributions for their employees at no extra cost as the savings from national insurance and taxable income fund the extra pension payments," he said, adding that prior to the introduction of the calculator, increasing contributions to pensions while maintaining a level of take-home pay was "often quite complicated".

Earlier this month, it was suggested by Andrew Harrop, the head of public policy for Age Concern and Help the Aged, that older people could receive financial, physical and mental benefits from working during their retirement.

By Sarah Adie