A report from HMRC highlights potential changes to pensions in the forthcoming Autumn budget, particularly concerning the viability of pension salary sacrifice schemes. Tomm Adams from Blick Rothenberg warns that abolishing or diminishing pension tax relief could impact future financial stability for retirees. He clarifies that salary sacrifice is often misunderstood as merely a personal income tax break, whereas it involves deferred tax on locked funds. The UK state pension's contribution to average final salary remains low compared to global standards, emphasizing the need for better policies, despite political obstacles.
The report suggests that pensions might be targeted in the Autumn Budget, raising concerns over the potential scrapping of pension salary sacrifice schemes.
Tomm Adams from Blick Rothenberg emphasizes the short-sightedness of raising revenues today at the expense of future financial stability for the general population.
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