Chancellor Rachel Reeves is set to deliver her crucial Autumn Budget next week, prompting urgent warnings for pension savers across the UK to review their financial strategies immediately.
Wealthy Brits Underprepared for Retirement
New data from wealth management firm Saltus reveals an alarming trend among high net worth individuals. Fewer than one in ten contributed the full £60,000 pension allowance last year, with just 14% planning to do so this year.
The survey of 2,000 UK respondents with £250,000 or more in investible assets (excluding primary residences) shows nearly half believe the government will seek new ways to tax wealth. This uncertainty is driving significant behavioural changes.
Tax Fears Driving Financial Adjustments
Approximately 29% of affluent individuals are considering trusts or other financial vehicles to reduce their exposure to potential tax changes. Meanwhile, 30% are actively reviewing or adjusting their long-term retirement plans.
More than a quarter (28%) expressed specific concern that Inheritance Tax changes could affect how they pass on pension benefits to their families.
Saltus explained the situation clearly: "With rising living costs, ongoing family support and tax uncertainty, many affluent households are being pulled in multiple directions, leaving less room to prioritise pension planning."
Expert Advice for Uncertain Times
Henrietta Grimston, Chartered Financial Planner at Saltus, provided crucial insights for those concerned about their retirement planning.
"It's clear from our latest data that even those with significant wealth are struggling to plan effectively for retirement," she stated. "Many high earners are underestimating what they'll need for the lifestyle they want and are not making the most of the generous allowances available."
Grimston emphasised that financial pressures from supporting children and elderly relatives, combined with rising costs, are significantly impacting saving capacity. She stressed that pensions remain one of the most tax-efficient ways to build long-term security, yet many people view them in isolation.
"Retirement planning should look at the full picture - pensions, ISAs, property, business interests and intergenerational transfers - to make sure each part is working together," she advised.
With speculation mounting about potential tax changes and the possibility that pensions relief could be targeted in the November 26 Budget, Grimston recommends immediate action: "Now is a good time to review your strategy, use available allowances, and ensure your long-term goals still stack up."
She concluded with reassuring advice for nervous investors: "Financial planning isn't about reacting to every policy change, but building flexibility and resilience so that, whatever the government does next, your future remains on track."
