Majority of pension professionals want salary sacrifice reforms dropped – poll

Majority of pension professionals want salary sacrifice reforms dropped – poll

Ellichipuram Umesh

Wed, July 29, 2026 at 6:26 PM GMT+3 2 min read

Nearly two thirds (62%) of pension professionals want planned reforms to salary sacrifice on pension contributions to be scrapped, polling by the UK's Society of Pension Professionals (SPP) has found.

The changes would take effect from April 2029. From that point, an annual £2,000 ($2,659) cap would apply to the amount of employee pension contributions that can be made through salary sacrifice without triggering national insurance contributions (NIC).

The SPP said most respondents favoured abandoning the reforms altogether.

Only 5% agreed with the government's position that the proposals should proceed unchanged.

Nearly 24% said the reforms should be implemented but in a different form.

Another 9% said salary sacrifice for pension contributions should be abolished entirely.

The findings follow an SPP industry webinar on the topic attended by more than 250 pension professionals.

SPP member Steve Hitchiner, who chaired the event, said: "This industry polling reveals strong support for rethinking these reforms, which is not a huge surprise given the changes will result in higher costs to employees – including over 850,000 basic rate taxpayers – and employers, along with less pension saving when more saving is needed.

"Salary sacrifice has long been an effective way of helping both employers and employees maximise pension contributions while reducing National Insurance costs.

"Restricting the NIC exemption from 2029 risks undermining those benefits and could discourage some employers from continuing to offer salary sacrifice arrangements altogether.

"While there was recognition from some attendees that reform may be necessary, this SPP polling shows there is little appetite for the proposals in their current form.

"With a new prime minister and new chancellor, the government should take this opportunity to engage with the pensions industry to explore alternative approaches that achieve its objectives without reducing incentives to save for retirement or placing additional financial burdens on workers and employers."

"Majority of pension professionals want salary sacrifice reforms dropped – poll" was originally created and published by The Accountant, a GlobalData owned brand.