The Government's announcement of a 1.2% increase in employer NI contributions could reduce this year's salary increment for employees, thus affecting their future pensions.
If businesses react by reducing annual salary increases by just 0.5% in the future, the impact for DC savers would be significant, leading to a notably smaller retirement fund.
The Chancellor's decision to unfreeze income tax thresholds after 2028 is commendable and lessens the burden on younger savers who are striving for a stable retirement.
Younger savers could face the most severe consequences from the national insurance changes, and the overall impact hinges on the Chancellor's ability to boost economic growth.
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