29 October 2024
Let me address the elephant in the room first, the budget; there have been many rumours, some surrounding the tax treatment for pensions. The policy team make the conscious decision not to report on rumours and speculation leading up to the budget, we want to ensure you can rely on us for news and updates and don’t want to confuse our audience with ‘ifs and buts’.
However, with so much speculation around the state of pensions tax treatment, we wanted to also make sure we understood the landscape of pensions offerings. This will allow us to make accurate representations and provide data to government should we need to, following the budget.
Without further ado, here are the results:
|
Arrangement mixes used |
% |
|
Net Pay Arrangement only |
8.7 |
|
Net Pay Arrangement & Relief at Source |
2.6 |
|
Net Pay Arrangement, Relief at Source & Salary Sacrifice |
18.6 |
|
Net Pay Arrangement & Salary Sacrifice |
9.8 |
|
Relief at Source only |
15.5 |
|
Relief at Source & Salary Sacrifice |
18.3 |
|
Salary Sacrifice only |
26.4 |
|
Arrangements used |
% |
|
Net Pay Arrangement |
40 |
|
Relief at Source |
55 |
|
Salary Sacrifice |
73 |
As you can see there are a lot of employers who use multiple types of pension methods. However, when you look at which arrangements are most prevalent, regardless of other methods used, we can see that salary sacrifice is king, used by almost three-quarters of employers.
As always, thank you for participating, this date really is useful and will help us in the coming days. We are waiting to launch a new quick poll until after the budget to see if there is anything we want to gauge your opinion on. Keep an eye out for that later this week.
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