Salary sacrifice schemes
Already a member of an AEGON scheme?Your employer may give you the chance to contribute to your pension plan using salary sacrifice. Find out what salary sacrifice is and how you can benefit.
What is salary sacrifice?
Salary sacrifice is a way of boosting either your pension contributions or your take-home pay. It’s an arrangement between you and your employer where you exchange part of your gross salary (your salary before tax and National Insurance deductions) for a non-cash benefit – in this case a pension contribution. You can choose how much of your salary you’d like to exchange.*
For example, if you currently earn £25,000 and agree to exchange £2,000, your gross salary will be reduced to £23,000 and your employer will pay £2,000 into your pension plan.
When your gross salary is reduced, you automatically pay less tax and National Insurance. This means you can use salary sacrifice to:
- boost your pensions saving and keep the same amount of take-home pay, or
- boost your take-home pay and have the same amount paid into your pension plan
*Your employer may have set a minimum level for your scheme.
If you're thinking about using salary sacrifice you should read the important information below.
Self service
Access your pension plan details online.
Find out about our online self-service area and how to register for access.
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Next steps
If you would like more information you should talk to a financial adviser.
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