Finance update After three months of negative returns, my figures have bounced back in style! I've tracked my pots for just over a decade now and May was the biggest jump I've seen. It almost justifies chucking everything I did into the markets for the past 3 months both via my pension at the end of the tax year as well as into my ISA at the start of this tax year! Overall networth is now £1.2m Breakdown for May: ISA up £12k Pension up £16k GIA /easy access savings up £4k Crypto up £15k House price up £5k Total : up £61.6k Another good chunk into my ISA in May, which means it is now full for the year, the quickest I've ever done it! My priorities are now filling Premium Bonds, pound cost averaging into Crypto, and also contributing a few hundred a month into my kids JISAs. 2025/26 tax year: Total change over the past couple of months is now +£36k. Non-Finance update Unpaid Parental Leave No weeks off during May. The big 6 weeks off comes ...
Psst. D'ya wanna double your money? Ok, how about tripling it? Triple and a half?! Final offer!
Sounds too good to be true right? Well depending on your tax band and your employer contribution to your pension scheme this is effectively what is on offer.
Access the spreadsheet here:
https://docs.google.com/spreadsheets/d/1UXYHzVNM2wrynmsJzAIcr9rlQcHShAgWSLy7cS6I3wU/edit?usp=sharing
As with all my spreadsheets, you only need to fill out the cells in bright yellow. In the case of this one, there are only 3 cells to fill in.
Sounds too good to be true right? Well depending on your tax band and your employer contribution to your pension scheme this is effectively what is on offer.
Access the spreadsheet here:
https://docs.google.com/spreadsheets/d/1UXYHzVNM2wrynmsJzAIcr9rlQcHShAgWSLy7cS6I3wU/edit?usp=sharing
As with all my spreadsheets, you only need to fill out the cells in bright yellow. In the case of this one, there are only 3 cells to fill in.
Example 1:
- Take the UK median wage of roughly £25k (mean wage is much higher due to sky high wages skewing it!)
- Employer contribution of 5%
- Employee contribution of 6%
- If done via salary sacrifice, then the benefit to the employee is 224%
- If they have a student loan then this rises to 273%
Example 2:
- Income of £60k
- Employer and Employer contribution same as above (5% and 6% respectively)
- If done via salary sacrifice, then the benefit to the employee is 279%
- If they have a student loan then this skyrockets to 349%!!
- These figures apply to any income above the higher rate tax band starting point, currently 50k.
- Sticking with this example, this employee could sacrifice 10k into their pension and instantly get 349% return!
All of these returns are instant, and the performance of your pension after that point is a bonus. Remember the magical effect that 20/30 years of compounding will have on it as well!
Anyway, this post might not last that long depending on what the Conservatives do to the Pension Tax Relief in a few weeks, we shall see!
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