Cumulative savings for a higher-rate taxpayer earning £55k–70k using all available perks.
The first year is the most impactful — quick wins stack up fast.
*Includes 4-year backdate
Tax savings are just the start. The pension and ISA pots compound year after year.
| Year | Annual Saved | Cumulative | Pension Pot | ISA Pot |
|---|---|---|---|---|
| 1 | £15,000 | £15,000 | £6,400 | £20,000 |
| 2 | £15,400 | £30,400 | £13,200 | £41,400 |
| 3 | £18,600 | £49,000 | £20,600 | £64,280 |
| 5 | £19,800 | £86,600 | £37,200 | £115,800 |
| 7 | £21,000 | £128,000 | £57,000 | £173,000 |
| 10 | £22,300 | £194,000 | £93,000 | £277,000 |
| 15 | £24,000 | £314,000 | £175,000 | £493,000 |
| 20 | £26,000 | £444,000 | £300,000 | £820,000 |
Pension: £500/month + employer NI share at 7% growth. ISA: £20,000/year at 7% growth.
Same salary. 20 years. Different decisions. Half a million pounds difference.
£300k pot. 25% tax-free lump sum = £75k cash. Rest provides income in retirement.
£820k fully accessible. Tax-free. No restrictions on when you take it.
Paid off in year 6. Free electricity for another 20 years. Zero energy bills.