People will have less incentive to save under Alistair Darling's new measure to cut tax relief on pensions of those who earn £150,000 or more a year, say executives from the insurance industry. Although the reduced tax relief is not to start until 2011, figures have criticised the chancellor's plan - which was announced in the Budget - by saying that regardless of the fact that it targets the highest earners, it 'undermines confidence in the stability of the savings industry'. Chief executive of Friends Provident Trevor Matthews said that aiming the measure at one group of people could eventually lead to others being targeted in the future. He told a conference on Wednesday: 'Now that contract has been broken and if it can be broken for one segment of savers now, it can be broken for others.' Meanwhile, Nick Poyntz-Wright, chief executive of Skandia UK, said that people will find better options to pension funds in 'tax efficient products'. Before the new measure comes into play in 2011, the government has pledged to consult on the issue.