Pensions: Savers could be £200 better off each year with salary sacrifice

According to Cushon, a worker earning £30,000 a year could save £200 a year in NICs, rising to £330 if they earn £50,000.

Yet despite the savings, 63 percent of those polled said they weren’t aware of salary sacrifice. Of those that are, just a third (34 percent) who had a Defined Contribution pension used it.

Four in 10 (38 percent) of the 2,000 surveyed didn’t know if salary sacrifice was offered by their employer or not.

Reasons for not choosing salary sacrifice included it sounding too complicated (24 percent), people misunderstanding how it works and thinking they would lose out on pay by opting for it (30 percent), and 20 percent thought it could affect their creditworthiness.