Rachel earns £70,000 and has two children. She's heard that Child Benefit gets clawed back above £60,000, so she's considering opting out entirely. That would be a mistake.
Instead, Rachel increases her pension contributions by £10,000/year via salary sacrifice. Her adjusted net income drops to £60,000. She keeps every penny of Child Benefit (£2,254/year for two children) AND gets 40% tax relief on the pension contribution. The pension move costs her about £5,800 in take-home pay but she gets £10,000 into her pension plus £2,254 in Child Benefit. That's a massive net win.
Critical: never opt out of Child Benefit entirely. Even if your income is too high and it's fully clawed back, claiming it gives the lower-earning parent National Insurance credits toward their State Pension. That alone can be worth thousands in retirement.
→ Action: Claim Child Benefit if you haven't. Increase pension to stay under £60k.