Pension changes: How you could be affected

Published On Oct 10, 2024, 7:01 PM

The article discusses potential changes to pension taxation in the UK as Chancellor Rachel Reeves seeks to raise £22 billion. Key proposals include: requiring employers to pay national insurance on pension contributions, altering inheritance tax rules on pension savings, capping the tax-free lump sum withdrawal from pensions, and possibly implementing a single rate of pension tax relief. These proposed changes could impact new employees, current workers, and retirees, affecting the amount of pensions saved and how they are taxed. The article emphasizes the importance of understanding these changes, particularly for young workers, as the implications could influence their future financial security and job market conditions.