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Interest rises in salary sacrifice schemes – consultancy advises

More and more people are expressing interest in salary sacrifice schemes, a consultancy firm has claimed.

Lorica found that benefits such as pensions contributions and childcare vouchers, which workers can pay for through their salaries, were becoming increasingly popular.

Partnerships manager Matt Duffy said: “People are thinking a lot more about the tax efficiencies that can be driven through the workplace. When they look at alternative roles, either within their own company or externally, the wider benefits context actually has a larger impact that previously, instead of just basic salary.”

He added that jobseekers were more likely to consider the overall benefits package which was being offered for a particular position, which was having an effect on recruitment.

The need to save for a pension may be one reason for the increase in interest, as there has been a lot of media coverage on the issue recently.

Standard Life recently completed a survey which showed that 63 per cent of people did not think they could live on £140 a week in retirement – the sum the government has proposed as the basic state pension.