Chancellor hits high earners' pensions

From April 2011 the tax advantages of pension saving for those earning over £150,000 have been greatly reduced by the recent Budget. And the opportunity to make hay in the intervening period has been stifled. Occupational Pensions examines the changes. 

• Chancellor hits high earners' pensions The April 2009 Budget includes an announcement that from 2011/12 those with an income of £150,000 per annum would not be entitled to tax relief on pension contributions at their full marginal rate and those earning over £180,000 would receive only basic (20%) tax relief. 

Also

Budget Report 2009: no silver lining The Chancellor announced that from April 2011, tax relief on pension contributions will be restricted for those with incomes of £150,000 and over, and tapered down until it is reduced to 20% for those earning over £180,000, the same as the relief afforded to a basic rate taxpayer. 

Shock freezing of pension tax allowances  Chancellor of the Exchequer Alistair Darling announced in his 2008 Pre-Budget Report that both the lifetime allowance, which limits the size of individuals' tax-free pension funds, and the annual allowance for tax relief on pension contributions will be frozen between 2010/11 and 2015/16. 

Pensions Act 2008: high expectations for auto-enrolment  A very great deal is expected of the three main provisions of the Pensions Act 2008: the introduction of auto-enrolment, compulsory employer contributions and personal accounts. The hope is that these initiatives will revolutionise the pensions savings culture.