Rachel Reeves’s plans to limit a tax break on pension contributions could stop savers from increasing their retirement pots and pile pressure on the state pension in the long run, experts have warned.

Many employers could cut their pension contributions if the Chancellor presses ahead with plans to reduce the tax breaks they and their employees receive in the Budget , they told The i Paper .

Under the proposals, which would raise up to £2bn a year, a £2,000 annual limit would be applied to the amount of salary that can get sacrificed into pensions without incurring national insurance (NI) payments, The Times reported. New Feature

In Short

Quick Stories. Same trusted journalism.

There is currently no limit on the amount that an employee can put into their pension under salary

See Full Page