Simon Bashorun, Financial Planning Team Leader at Investec Wealth & Investment said:
“It is great news to see pension saving excluded from the Salary Sacrifice changes announced in today’s Autumn Statement. Where this option is offered, it remains an incredibly efficient way for individuals to contribute to their pension scheme, particularly where their Employer pays part of the Employer’s National Insurance saving into the pension plan.”
“Since April 2015, individuals taking income benefits flexibly from their pension plans have had to be aware that doing so may reduce the amount they can contribute tax efficiently to pensions in the future through the £10,000 Money Purchase Annual Allowance. The reduction in this allowance to £4,000 reinforces the need to take appropriate advice when drawing benefits from a plan in this way, particularly if there is the intention to continue working and contributing to a pension scheme at that point or at some point in the future.”
