Savers face shock of pension changes

Millions of savers are about to face pension tax changes that could slash their retirement savings by tens of thousands of pounds.

High earners in particular are being warned to overhaul their arrangements and put as much into their pensions as possible up to current tax limits, to avoid losing valuable benefits before the Budget on 16 March.

Darren Laverty, partner at employee benefits specialist Secondsight, says: ‘Taking into account an annual growth rate of 5 per cent, any individual with a fund currently worth £358,000 with 20 years to go until retirement is likely to hit the £1million ceiling. Similarly, someone retiring in 15 years with a pension pot today of £463,000 could also be affected.’

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