Nearly 3 in 10 workers plan to increase pay-ins to pension before Labour’s tax change
Third of workers plan to change pension payment ahead of tax change
- A new survey reveals that 28 per cent of pension savers using salary sacrifice schemes plan to increase their contributions before April 2029.
- From April 2029, salary-sacrificed pension contributions exceeding an annual threshold of £2,000 will no longer be exempt from National Insurance, becoming subject to it.
- Approximately 11 per cent of savers anticipate reducing their pension contributions once the new rules are implemented, while many are unaware of the upcoming changes.
- Pensions industry bodies have criticised the changes, arguing they could undermine saving behaviours and lead to smaller pension pots, with employers having fewer incentives to increase contributions.
- The Treasury defends the reforms, stating they prevent high earners from avoiding tax and protect 95 per cent of workers earning under £30,000 who use salary sacrifice.