The majority (90 per cent) of UK pensions professionals do not support the government’s potential plan to remove or cap the employer and/or employee National Insurance contribution (NIC) exemptions for salary sacrifice pension contributions, according to a survey by Aptia.

The survey of 52 pension professionals at Aptia’s client event at Tower Bridge on 20 November found that just 2 per cent of attendees were in support of the Chancellor’s rumoured plans ahead of the Budget, while 8 per cent were unsure.

Commenting on the findings, Aptia UK president, Malcolm Reynolds, said: “It is clear that pensions professionals are deeply concerned that removing or capping NIC exemptions on salary sacrifice pension contributions would undermine a well-established system that incentivises retirement saving.

“Salary sacrifice is not a loophole – it is a proven mechanism that helps employees build financial security and allows employers to offer competitive benefits without escalating costs. Restricting this relief risks discouraging pension contributions at a time when the UK needs to strengthen – not weaken – long-term savings habits.”

Meanwhile, 80 per cent of survey respondents agreed that the government should legislate for future Budgets to be unable to remove or restrict accrued tax-free lump sum entitlements. However, 10 per cent felt this was not necessary and 8 per cent were unsure.

The survey found a divide in opinion regarding The Pensions Regulator's (TPR) Defined Benefit (DB) Pension Funding Code, with 38 per cent agreeing that ‘the code improves the valuation process’ and the same percentage ‘unsure’ whether the code has had any impact. Twenty-three per cent felt the code has not improved the valuation process.

Lastly, 75 per cent of those surveyed supported increased accessibility to occupational scheme investment, by allowing loans to members for their immediate life needs. Thirteen per cent would be against this initiative, with the same number unsure.

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