Pensions - Articles - Savers to act due to falling FSCS limit & pension allowance

 There are two big reason to act. Firstly the Chancellor is considering reducing the tax relief available on pensions for higher rate taxpayers and these are the people who are likely to have the biggest bank balances. At present higher rate taxpayers get 40% tax relief on pension contributions meaning every £6 invested can be turned into £10. The Chancellor is reviewing this and many predict the rate of relief will be cut.

  

 Secondly, for individuals earning above around £120k, there’s a further benefit as after April, they will have big restrictions in how much they can pay into pensions each year with some seeing their allowance cut from the current £40k to £10k so this could be the last opportunity to make a substantial top up.