Over 80% of advisers are encouraging their clients to supplement their pension with other retirement saving strategies as a result of the changes announced in the Chancellor’s pre-budget report, research from Albion Ventures has found.

The research, conducted among 274 intermediaries including IFAs and wealth managers, found that 66% of respondents think George Osborne’s decisions to cut the annual allowance on pension contributions from £50,000 to £40,000 and reduce the lifetime limit from £1.5m to £1.25m undermine consumer confidence in pensions.

As a result of the changes, 83% of advisers are recommending that clients supplement their pension with other savings vehicles, with 45% recommending venture Capital Trusts (VCTs) as a supplement.

Albion Ventures managing partner Patrick Reeve said: “While these cuts are aimed at higher earners, as an unintended consequence, an already low level of public confidence in pensions could be damaged further.

“What is clear from the research is that these changes have acted as a catalyst for advisers to explore other ways clients can supplement their retirement savings. With a sizeable portion of the UK’s baby boomers retiring over the next decade, there is growing pressure to source predictable levels of attractive income and it’s no surprise that we have seen a steep rise in enquiries from advisers.”

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