Majority of pension professionals want salary sacrifice reforms dropped – poll

Nearly 2 thirds (62%) of pension professionals privation planned reforms to wage sacrifice connected pension contributions to beryllium scrapped, polling by the UK's Society of Pension Professionals (SPP) has found.

The changes would instrumentality effect from April 2029. From that point, an yearly £2,000 ($2,659) headdress would use to the magnitude of worker pension contributions that tin beryllium made done wage sacrifice without triggering nationalist security contributions (NIC).

The SPP said astir respondents favoured abandoning the reforms altogether.

Only 5% agreed with the government's presumption that the proposals should proceed unchanged.

Nearly 24% said the reforms should beryllium implemented but successful a antithetic form.

Another 9% said wage sacrifice for pension contributions should beryllium abolished entirely.

The findings travel an SPP manufacture webinar connected the taxable attended by much than 250 pension professionals.

SPP subordinate Steve Hitchiner, who chaired the event, said: "This manufacture polling reveals beardown enactment for rethinking these reforms, which is not a immense astonishment fixed the changes volition effect successful higher costs to employees – including implicit 850,000 basal complaint taxpayers – and employers, on with little pension redeeming erstwhile much redeeming is needed.

"Salary sacrifice has agelong been an effectual mode of helping some employers and employees maximise pension contributions portion reducing National Insurance costs.

"Restricting the NIC exemption from 2029 risks undermining those benefits and could discourage immoderate employers from continuing to connection wage sacrifice arrangements altogether.

"While determination was designation from immoderate attendees that betterment whitethorn beryllium necessary, this SPP polling shows determination is small appetite for the proposals successful their existent form.

"With a caller premier curate and caller chancellor, the authorities should instrumentality this accidental to prosecute with the pensions manufacture to research alternate approaches that execute its objectives without reducing incentives to prevention for status oregon placing further fiscal burdens connected workers and employers."

"Majority of pension professionals privation wage sacrifice reforms dropped – poll" was primitively created and published by The Accountant, a GlobalData owned brand.