Pension route guide
Salary sacrifice vs private pension calculator
Who this helps
Who should compare these two routes
Why the contribution route matters as much as the amount
What this helps you decide
Both routes can reduce ANI
Salary sacrifice and qualifying private pension contributions can both move the threshold figure HMRC tests for Child Benefit and Personal Allowance tapering.
Salary sacrifice often reduces NI as well
Because salary is reduced before payroll taxes, salary sacrifice can create employee National Insurance savings that a private pension route does not normally create.
Private pension can still be the cleaner route
If payroll changes are not available or you want contribution flexibility outside payroll, a private pension can still be the right answer.
Compare the route before changing the budget
The take-home effect should be checked before you commit to a contribution level that might be too heavy for monthly cash flow.
Common questions
Does salary sacrifice reduce ANI in the same way as a private pension?
Both can reduce adjusted net income when they are set up correctly, but salary sacrifice works through payroll by reducing contractual salary before tax is calculated.
Why can salary sacrifice cost less take-home than a private pension?
Salary sacrifice can reduce employee National Insurance because the pay is reduced before payroll taxes are worked out. A private pension contribution may still reduce ANI, but it does not usually create the same NI saving.
Is salary sacrifice always better than a private pension?
No. Salary sacrifice is often more efficient on take-home cost, but a private pension can still be the right route if payroll changes are not available or you want a different contribution arrangement.
Which calculator should I use after this comparison page?
Use the salary sacrifice calculator when payroll is the main lever. Use the ANI calculator when the main issue is threshold position rather than the contribution route itself.
Related calculators
Related calculators in the same pension and ANI cluster
Salary sacrifice calculator
Use the live salary sacrifice tool when payroll pension is the likely route and you want the exact take-home trade-off.
Adjusted Net Income calculator
Use the ANI calculator when the main issue is whether either route clears a threshold rather than how payroll works.
Gift Aid tax relief calculator
Use this when Gift Aid is another candidate for reducing ANI alongside pension contributions.
Tax and payslip planner
Move into the broader planner when you want salary, pension, PAYE, and year-end tax effects in one saved baseline.
Save this setup in Seedli