UK. Savers top-up pensions as Budget cut looms
Pension provider Zurich has seen pension top-ups soar ahead of next week’s Budget as fear of pension tax relief cuts loom.
Cash flowing into pensions on Zurich’s investment platform increased 98 per cent in September, compared to the annual average.
The value of one-off pension contributions also jumped 161 per cent from the 12-month average as savers invested larger amounts, the provider said.
Alistair Wilson, Zurich’s head of retail platform strategy, said people were “making the most of the higher pension savings cap while they still can”.
He said investors were clearly worried the government could slash the savings limit in the upcoming budget and were rushing to top-up their pots.
Mr Wilson said: “The amount of money flowing into pensions doubled last month – even outstripping peaks seen ahead of tax-year end.
“Many savers are also paying in more than the current £40,000 annual limit to take advantage of unused allowances from previous years before it’s too late.”
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