How increasing pension contributions can boost your Child Benefit and your retirement

Parents affected by the High Income Child Benefit tax Charge (HICBC) could boost their pension savings and increase the amount of Child Benefit they get

Parents and child sit on sofa as they look at financial document.
The High Income Child Benefit tax Charge (HICBC) threshold is now £60,000.
(Image credit: Moyo Studio via Getty Images)

Thousands of parents received a welcome reprieve last year when the threshold for the High Income Child Benefit Charge (HICBC) was raised. But higher earners have an extra trick to bag more of their Child Benefit, while also boosting their retirement nest egg – paying more into a pension.

Contributing more to your pension could reduce how far your earnings go above the threshold, meaning you could keep thousands of pounds extra of Child Benefit.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.

With contributions from