Bonus season – 5 steps for making the most of a bonus

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The cost-of-living crisis might have shredded your savings but what can you do with your bonus that might put you back on even ground?

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Published on 17 January 2024

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

Heading into bonus season, some of us will be looking forward to a much-needed income boost. The cost-of-living crisis has shredded savings, and a bonus can help get our finances back on even footing.

Making the most of your bonus can transform your financial resilience so it’s important not to let it get frittered away. Using it to boost your pension or putting it in an ISA could help you save on tax and build up your savings pot.

This article isn’t personal advice. If you're not sure if an action is right for you, ask for financial advice.

Remember, pension and tax rules can change, and benefits depend on your circumstances. You also can’t usually take money out of a pension until at least age 55 (rising to 57 from 2028).

Ask your employer if they run a bonus sacrifice scheme where you can put some or all of your bonus into