Case study | Workplace pensions consulting

Financial services employer unlocks long term savings through pension salary sacrifice

How we helped a small advisory firm implement pension salary sacrifice and secure more than £90,000 in projected National Insurance savings

Client overview

Business type

Financial advisors

Locations

Employees

15-20 employees

Key outcomes

Implemented a fully managed pension salary sacrifice arrangement to reduce rising employer National Insurance costs
Reframed the employer’s understanding of long term savings, enabling leadership to make an informed investment decision
Projected long term savings of around £90,000 over ten years, with the first year’s saving almost fully covering the implementation cost

The challenge

Although the employer had explored pension salary sacrifice in the past, they had repeatedly been advised that the cost of implementation would outweigh any savings. With employer National Insurance having recently increased at the time of this project, the partners needed a solution to offset their rising costs.

The challenge was not the technical complexity of pension salary sacrifice, but overcoming outdated guidance and helping the client understand the long term financial return.

Key challenges included:

Previous advisers had told the employer that pension salary sacrifice was not cost effective
The expected annual saving of approximately £7,800 had been compared only against the one off implementation cost, creating a misleading impression
An outdated structure no longer aligned with the organisation’s size, sophistication or employee expectations
The business needed clarity, simplicity and transparent costings before committing

Claire Gibson DipFA Assoc CIPD MLIBF
Senior Employee Benefits Consultant

The solution

NFP used its existing relationship with the firm’s pension administration team to open a wider conversation about legislative change and the renewed value of salary sacrifice.

Our approach included:

Reframing salary sacrifice as a long term investment, demonstrating savings over a ten year period rather than comparing a single year’s return to a one off cost
Offering a fixed implementation fee, ensuring full transparency with no hidden costs
Managing the full project from start to finish, including payroll liaison, provider coordination and employee communication

The results

For their business

Immediate National Insurance cost savings

Delivered immediate National Insurance savings, helping offset increased employer NI rates from April 2025.

Clear long-term financial benefit

Provided clear long-term financial planning, with approximately £90,000 in projected savings over ten years.

Reinvestment into employee benefits

Enabled the employer to reinvest year one savings into additional employee benefits, making the change cost neutral in future years.

For their people

Automatic higher-rate tax relief

Allowed higher-rate taxpayers to receive full tax relief at their highest marginal rate automatically, without the need for HMRC self-assessment.

Improved engagement and understanding

Used engagement sessions and clear communication to increase understanding of pension saving and encourage higher contribution levels.

No loss of protection

Achieved zero opt-outs, maximising employer savings while maintaining employee participation and protection.

Ready to unlock the value of salary sacrifice?

To discuss how salary sacrifice can help your workplace pension deliver more value to your business and people, and how NFP can manage your salary sacrifice implementation from start to finish and beyond, get in touch with our dedicated team today.

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