Should I be contributing more to my pension in case the rules change?

In almost 40 years of providing financial advice, I don’t recall a time when people have felt less secure about their pension plans than they do now.

Much of that anxiety comes from the constant stream of rumours that surface before every Budget. In recent weeks, we’ve heard talk of higher-rate tax relief being scrapped or the 25% tax-free lump sum being cut. None of this has been confirmed, yet the speculation unsettles savers and prompts rushed decisions that can easily backfire.

It’s frustrating that the government does little to silence unfounded stories. Perhaps it can’t, given the secrecy around fiscal events, but the effect is a steady erosion of confidence in pensions at a time when stability is most needed.

It helps to remember why pensions exist in the first place. They are designed to provide income in retirement, not simply as a way to claim tax relief or a lump sum. The 25% tax-free amount has been part of the system for decades and every government since has been careful not to break that promise. It would take a very brave (or stupid!) Chancellor to do so now.

For most people, the best approach remains unchanged. Contribute regularly, stay invested, and focus on the long-term purpose of your pension rather than the short-term noise around it.