NI rise good for pensions

The forthcoming increase in National Insurance contributions will have a positive knock-on effect for pensions. The Budget, which introduces NI increases for both employers and employees, should encourage employers to make bigger contributions to employee pension schemes, as they would not pay NI on any contributions, said Stewart Ritchie, head of pensions at Scottish Equitable. For employers and employees alike, participation in salary sacrifices will also become more attractive once the Chancellor's hike on NI contributions is enacted on 6 April 2003. Under a salary sacrifice schem...