Pensioners given ‘shot in the arm’ with income tax cut – but is it a ‘double-edged sword’?

Other experts have suggested now presents a limited time chance for those who are saving into a pension. 

Andrew Tully, technical director at Canada Life, said: “There is a pension planning opportunity for those who can afford to make pension contributions in the current tax year.

“Additional rate taxpayers will get 45 percent relief, whereas next year contributions will only receive 40 percent relief. 

“Similarly, basic rate taxpayers can obtain 20 percent relief on contributions this year, which will fall to 19 percent next year.”

Mr Kwarteng has vowed to usher in a “new era” with his mini-Budget changes, however, some are worried about what the alterations will mean for those struggling to build wealth for retirement.