Boost your pension by £1,300 with this national insurance hack

Higher-rate taxpayers can use the cut in national insurance contributions to boost their pension pot by £1,300 a year — at no extra cost.

Workers earning between £50,270 and £125,140 a year will save £62.83 a month — £754 a year — after the government cut national insurance by two percentage points on January 6, from 12 per cent to 10 per cent.

If you used that saving to increase your pension contribution through salary sacrifice (where your pension contributions come out of your pre-tax income) you could add an extra £1,300 a year to your pension pot, once the tax relief is factored in, according to the financial wellbeing and retirement specialist Wealth at Work.

National insurance is paid on earnings by employees and