This 2-Minute Habit Could Save You £1,000+

Dear Fellow Financial Freedom Seeker,

I have a confession to make, when I first went into the higher rate tax band (40%), I was enrolled in a workplace pension where I contributed 5% and my employer contributed 3%. I thought that meant that 5% of my gross salary came out of my paycheck and my employer contributed 3% of my gross salary separately.

WRONG!

Legally, in an auto enrolment pension in the UK, only the element of your salary that’s within the basic rate tax band is where the 3% and 5% calculation comes from.

I only found this out because I reviewed my payslip and noticed that the pension contribution didn’t seem as high as it should be. It was correct. And that was how I discovered that the pension contribution is only calculated on my basic rate income.

In honour of you probably being paid this week and for the sake of past Pernia…

This week’s One Simple Step is to
👣 Check your payslip

Sounds boring? It may be.
But this quick check could save you hundreds—if not thousands—of pounds. Or teach you something new.

📹 Watch this where I explain how to read your payslip in under 60 seconds

If something looks off - don’t panic
❧ Reply to my email and we can try to work it out together
❧ Or ask your employer’s payroll team to explain what’s going on
❧ Or call HMRC on 0300 200 3300

It’s your money. And you deserve to keep as much of it as possible.

Speak next week,
Pernia | Your Finance Travel Buddy