Advisers warn salary sacrifice cap risks deterring pension saving

The widely-trailed move was formerly announced in the Autumn Budget yesterday (26 November) and revealed early through an accidental Office for Budget Responsibility (OBR) publication. The reform means pension contributions above £2,000 made via salary sacrifice will face both employer and employee NI contributions from April 2029. Ordinary employer pension contributions remain exempt. The OBR estimated that the restriction will raise £4.7bn in 2029/30, although behavioural changes by employers and employees could reduce the yield by £700m. The OBR also said employers could look...