They don’t contribute more to pension. They just cut the number of hours they’ll accept to keep the salary below the threshold. Or maybe get a salary sacrifice car lease or something.
It’s kinda stupid that one person making 120k is far worse off compared to a couple making 60k each. The optimal play for high earner couples is to both remain less than full time.
It does encourage pension contributions though. It’s stupid that it doesn’t even seem to be going up with inflation?
They don’t contribute more to pension. They just cut the number of hours they’ll accept to keep the salary below the threshold. Or maybe get a salary sacrifice car lease or something.
It’s kinda stupid that one person making 120k is far worse off compared to a couple making 60k each. The optimal play for high earner couples is to both remain less than full time.
And only if you have a salary sacrifice pension scheme and can choose your contribution amount.
Doesn’t contributing into a private pension count?
I thought a salary sacrifice workplace pension was a legal minimum now?