The budget’s hammer blow to private sector pensions is a wake-up call for Brits considering late-life planning, according to a leading cremation provider in the UK.
Chancellor of the Exchequer Rachel Reeves’ announced that the amount of contributions made via salary sacrifice that is exempt from national insurance contributions (NIC) will be capped at £2,000 a year from April 6, 2029.
Salary sacrifice allows employers to agree to reduce an employee’s salary in return for a benefit, which can include the employer making contributions to a pension scheme on the employee’s behalf. Currently, no employment income tax or NICs are paid on those contributions.
Peter Shuttleworth, General Manager at Celebration of Life, says the move will result in the reduced pensions savings for employees at a time when it is widely acknowledged that UK workers are ‘sleepwalking’ into retirement.
He said:...
