"Millions more people could be impacted by Rachel Reeves' changes to workplace pensions than originally thought, the Office for Budget Responsibility (OBR) has warned. In November's Budget, the chancellor announced that, from 2029, workers will face a 2,000 cap on the amount they can save into a pension through salary sacrifice schemes, after which further contributions are subject to National Insurance (NI)."
"Currently, any contributions made through the scheme before salaries are paid to workers are exempt from NI and tax, making it an attractive and tax-efficient way to save for retirement, as well as to lower potential tax obligations elsewhere. Somebody on a 40,000 salary contributing five per cent towards their pension often the default starting point once auto-enrolment kicks in would hit that 2,000 limit annually,"
Donations enable The Independent to deploy reporters across reproductive rights, climate change, and Big Tech while keeping reporting freely accessible without paywalls. The Office for Budget Responsibility warns that millions more workers could be affected by a pension change announced in the November Budget. From 2029, a £2,000 cap on pension savings via salary sacrifice will apply, after which further contributions will incur National Insurance. Currently, salary sacrifice contributions are exempt from National Insurance and tax, making them tax-efficient. A worker on a £40,000 salary contributing five percent would reach the £2,000 cap, potentially increasing NI costs with future raises.
Read at www.independent.co.uk
Unable to calculate read time
Collection
[
|
...
]