New research from national law firm Shakespeare Martineau has found that this year’s Autumn Budget has sparked pension anxiety across the UK – with concern particularly pronounced in the West Midlands, where adults are more worried than the national average about declining tax efficiency and future savings growth.
The survey of 2,500 UK adults, including 587 in the West Midlands – conducted immediately after the government’s budget on Wednesday, 26 November – shows a clear behavioural shift, with half (50%) of West Midlanders worried about the decline in the value of their pension pots or savings accounts, compared with 38% of Brits overall.
These concerns are being driven by several major announcements, including a cap of £2,000 on pension contributions via salary sacrifice for National Insurance relief from April 2029, an extension of the freeze on income tax thresholds to 2031, and a reduction of the annual cash ISA limit for savers under 65 from £20,000 to £12,000 from April 2027.
Julia Rosenbloom, private wealth tax partner at Shakespeare Martineau, said: “The Autumn Budget has clearly rattled confidence among savers. The combination of National Insurance changes, frozen tax thresholds and cuts to cash ISA allowances is pushing many people to reassess their pension and savings arrangements.
“The income tax freeze, first introduced in 2021, combined with wage growth and inflation, will push an increasing number of workers into higher tax bands, reducing take-home pay and heightening the need for tax-efficient saving. In terms of cash ISAs, while those aged 65 and over will still enjoy the £20,000 limit, the reduction for working-age adults represents a fundamental shift for those who rely on low-risk savings.
“Younger adults and those in their peak earning years are particularly concerned about diminishing tax efficiency and the long-term impact on their retirement planning. While salary sacrifice has long been a valuable mechanism for boosting pension savings, the Budget’s adjustments risk reducing its appeal and effectiveness.
“Now more than ever, individuals should seek professional advice to ensure their pension strategy remains resilient, tax-efficient and aligned with their long-term goals.”
Nationally, many groups – especially men, younger adults and higher earners – indicate they are likely to adjust their pension contributions following the Chancellor’s announcements. Regionally, 22% of people in the West Midlands say they plan to alter the amount they contribute to their pensions.
Concerns around future tax efficiency also appear stronger in the region. While 32% of people nationally believe changes to National Insurance relief on salary sacrifice will make saving harder, this rises sharply to 41% of people in the West Midlands.
Similarly, almost a third (32%) of UK adults are worried their pension contributions are becoming less tax-efficient – but this anxiety climbs to 43% among West Midlanders, suggesting the region feels especially vulnerable to shifting tax rules.
Julia added: “These figures underline just how unsettled people in the West Midlands feel about the future of their retirement savings. The combination of policy changes and economic uncertainty means that reviewing your pension and savings strategy has never been more important. Taking action now, rather than waiting, can help ensure that individuals are making the most of available allowances and protecting their long-term financial security.”