Rachel Reeves confirms salary sacrifice change for pensions (Image: inyourArea)

Pension savers utilising salary sacrifice schemes to contribute towards their retirement fund will face a cap on how much they can pay in before incurring National Insurance charges.

Rachel Reeves is using her Budget a new annual cap of £2,000 on the amount that can be saved into your pension through salary sacrifice schemes in her Budget, according to documents recently released by the Office for Budget Responsibility (OBR).

The OBR has stated that this new cap will be implemented from April 2029, meaning that pension contributions from salary sacrifice schemes exceeding the annual threshold of £2,000 will no longer be exempt from National Insurance.

It is estimated that the introduction of this cap wi

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