Around 3.3 million pension savers face potential losses due to reforms unveiled in the Budget, according to figures from HM Revenue and Customs (HMRC). Online guidance from HMRC reveals that an estimated 7.7 million employees currently use salary sacrifice arrangements for pension contributions.

Among these, 3.3 million sacrifice over £2,000 of their salary or bonuses annually. Budget measures will mean that salary-sacrificed pension contributions exceeding a £2,000 annual threshold will lose their national insurance (NI) exemption from April 2029.

Any contributions beyond £2,000 will be classified as standard employee pension contributions within the tax system and become liable for NI contributions. Many employers provide salary sacrifice schemes within their pension offerings as a tax

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