UK pension funds could see losses of £50bn over five years if tax reliefs are reduced in the Budget, according to Rathbones. Experts say the proposed changes, including lowering the additional rate of tax relief from 40% to 25%, could discourage contributions and harm the economy. Malvee Vaja, financial planner at Rathbones, warned: "Proposed changes to pension tax relief could significantly lower pension pots," while Oliver Jones, the firm's head of asset allocation, added that although reforming tax relief may provide short-term savings, the long-term consequences could be "severe."
