Nearly half of savers expect to pay more tax on their pension contributions, with 62% expecting a national insurance hike. This increase in tax means that 46% of savers now expect less money will go into their pension, revealed a survey by Pensions UK.

With the reforms hitting pay packets directly, there was high awareness of the plans to curb the tax break at £2,000, with 63% of current users of salary sacrifice aware of the changes.

But Pensions UK found that salary sacrifice savers had ‘resilience as well as risk’, with 40% saying they do not expect to change their contributions, but one in four plan to increase their contributions before the change comes into effect.

But there has been little impact as yet with only 3% of savers planning to reduce their contributions immediately, although 11% expect to reduce when the threshold change takes effect.