Child benefit changes could see higher earners reap pension boost

Analysis from Quilter says gains to be made from Spring Budget changes

Jenna Brown
clock • 2 min read

Changes to the high income child benefit charge (HICBC) announced in last week’s Spring Budget could see higher-earning parents get a significant boost to their pension pots, according to analysis from Quilter.

The advisory business crunched the post-Spring Budget numbers and found parents earning £75,000 could gain £16,000 in child benefit payments and leave themselves £170,000 "better off in retirement under new rules". It explained that a family with two young children, where one parent earns £75,000, could increase their pension contributions from £200 to £600 per month and claim "an impressive" £15,931 over the 12-year period during which their children are eligible for child benefit payments. Quilter said the long-term result would also be to "increase their pension pot by £167,364 at ...

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