Reaching a six-figure salary in the UK takes years of hard work, but many don’t realise how much of their income gets taken away in tax. 📌 At £100,000, your take-home pay is around £68,557—meaning over £30,000 is deducted in tax and National Insurance. 📌 It gets worse… Between £100,000 and £125,140, you’re effectively taxed at 60% due to the loss of your personal allowance. For every £2 you earn over £100k, you lose £1 of your £12,570 tax-free personal allowance. How to Reduce Your Tax Bill Legally: One of the most effective ways to keep more of your income is through pension contributions: ✅ Contributing to your pension lowers your taxable income, keeping you below the 60% tax trap. ✅ You get tax relief—for every £1,000 you contribute, it only costs you £600 as a higher-rate taxpayer. ✅ Employer contributions—if your employer matches contributions, that’s free money added to your pension. What are the risks? * Access Restrictions – Pension savings are locked until at least age 57. If you need flexibility, consider using a Stocks & Shares ISA alongside your pension. * Market Risk – Pension investments fluctuate, but a well-diversified global fund helps reduce risk over time. * Changing Tax Rules – Future governments could adjust pension tax benefits. Regularly reviewing your strategy ensures you stay ahead. Most people overpay tax without realising it. A smart pension strategy means keeping thousands more of your hard-earned money while building long-term wealth. Are you taking full advantage of tax-efficient investing?