[UK] 3 in 10 workers will increase pension pay-ins before tax change

In the UK, new research has revealed that more than a quarter of pension savers using salary sacrifice schemes intend to increase their contributions before a significant change comes into effect, Yahoo reports.

The findings, from a December survey by Pensions UK, show that 28 per cent of individuals in such schemes plan to boost their pension payments before April 2029. From this date, salary-sacrificed pension contributions exceeding an annual threshold of £2,000 will no longer be exempt from National Insurance (NI). 

These amounts will be treated as standard employee pension contributions within the tax system instead and become subject to NI.

By contrast, around one in ten savers reportedly anticipate reducing their pension contributions once the new rules are implemented. 

According to Pensions UK, only 3 per cent plan to reduce their pension contributions before the change, while 43 per cent do not expect to make any changes to their pension contributions.

Around 11 per cent stated that they do expect to reduce their pension contributions when the change takes effect. Some respondents said they are not sure what they will do.

Recent HMRC guidance on the changes said an estimated 7.7 million employees currently use salary sacrifice to make pension contributions. Of these, 3.3 million reportedly sacrifice more than £2,000 of salary or bonuses.

The budget announcement received criticism from pension industry bodies, who argued many people are already thought to be under-saving for their later years and heading for a challenging time financially in later life.

Source: Yahoo

(Link via original reporting)

In the UK, new research has revealed that more than a quarter of pension savers using salary sacrifice schemes intend to increase their contributions before a significant change comes into effect, Yahoo reports.

The findings, from a December survey by Pensions UK, show that 28 per cent of individuals in such schemes plan to boost their pension payments before April 2029. From this date, salary-sacrificed pension contributions exceeding an annual threshold of £2,000 will no longer be exempt from National Insurance (NI). 

These amounts will be treated as standard employee pension contributions within the tax system instead and become subject to NI.

By contrast, around one in ten savers reportedly anticipate reducing their pension contributions once the new rules are implemented. 

According to Pensions UK, only 3 per cent plan to reduce their pension contributions before the change, while 43 per cent do not expect to make any changes to their pension contributions.

Around 11 per cent stated that they do expect to reduce their pension contributions when the change takes effect. Some respondents said they are not sure what they will do.

Recent HMRC guidance on the changes said an estimated 7.7 million employees currently use salary sacrifice to make pension contributions. Of these, 3.3 million reportedly sacrifice more than £2,000 of salary or bonuses.

The budget announcement received criticism from pension industry bodies, who argued many people are already thought to be under-saving for their later years and heading for a challenging time financially in later life.

Source: Yahoo

(Link via original reporting)