More than three in five workers surveyed by Penfold are concerned about potential changes to pension taxation in the upcoming Autumn Budget, with tax relief emerging as the biggest area of concern.

The snap survey of 120 Penfold customers found that 31.7 per cent were most concerned about possible changes to pension tax relief, followed by changes to the tax-free lump sum (24.2 per cent) and salary sacrifice arrangements (15 per cent).

The findings come ahead of the Autumn Budget on 28 October, with pension taxation among the areas attracting speculation.

The government has already announced changes to salary sacrifice, with the National Insurance exemption on employee pension contributions made through salary sacrifice set to be capped at £2,000 a year from April 2029.

Penfold’s research also found that 71.7 per cent of respondents would be likely to review their pension arrangements if changes were announced in the Budget.

The workplace pension provider warned that uncertainty around pension tax rules could make long-term planning more difficult, particularly when savers are considering how much to contribute and when to retire.

Penfold co-founder, Chris Eastwood, said: “The fact that three in five surveyed workers are concerned about pension tax changes tells us something important: people are paying attention.

“But uncertainty can make it harder to know what to do. Rather than making decisions based on speculation, the most useful thing savers can do is understand their pension today and make sure it’s working for them.”

Eastwood also highlighted the value of pension tax relief, noting that for a basic-rate taxpayer using a relief-at-source pension, an £80 personal contribution is topped up to £100, while higher-rate taxpayers may be able to claim further relief.

Penfold’s own guidance confirms this treatment for eligible personal and employee contributions.

“Whatever the Chancellor announces, the fundamentals of long-term pension saving won’t change overnight,” Eastwood added.

“If the Budget encourages more people to check their pension and understand what they’re building towards, that can only help them plan with greater confidence.”

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