Salary sacrifice cap and the squeezed middle

Salary sacrifice changes: millions set to cut pension contributions

Plans to restrict salary sacrifice on pension contributions will lead to lower levels of saving, according to the government's own estimates.

Salary sacrifice cap and the squeezed middle

The £2,000 cap on National Insurance (NI) free salary sacrifice pension contributions was sold as a tax on high earners but, if you look closer, the opposite is true. In fact, the people most exposed are middle-income savers and the small businesses that employ them. For the so-called “squeezed middle”, it is yet another quiet hit to take. Why do the rules adversely affect middle-earners? From April 2029, salary sacrifice tax relief will continu…

Pensions salary sacrifice cap: How will pension savers react?