Andrew Prosser, head of investments at InvestEngine, said: “Today’s Budget confirmed that pension contributions above £2,000 will face National Insurance from April 2029.
“That won’t matter much if you earn £40,000 and contribute 5 per cent of your salary; you’re well within the limit.
“But for higher earners, the impact is bigger and over decades, and when taking into account compounding investment growth, it can significantly reduce someone’s retirement pot.
“Employers may also scale back contributions, adding another hit.
“To counteract this, people will need to review their workplace pension and maximise employer contributions wherever possible, and consider topping up using any remaining annual allowance.
“Spouses and civil partners can also coordinate their allowances and investments to shelter more income from tax, helping to protect retirement savings against these changes.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.