The High Income Child Benefit Charge is draining your retirement—here’s the ruthless hack to keep the cash and retire wealthier than ever.
Topping-up your pension to reduce your income is the best way to keep all your Child Benefit. (That’s assuming you’re not a high high-earner, in which case it won’t work. Or if you’re certain you’ll die before you can access your pension (at age 55/57) and so be unable to spend it, in which case there’s no point.)
The method is simple:
Say you’re the sole earner in your house, and you make £65,000 a year.
Increasing your pension contributions by £5,000 a year will reduce your income to £60,000. You’ll therefore keep all your child benefit.
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