The Chancellor has been urged to make sure that individuals continue to be properly incentivised to save for their future, amid reports that the state pension triple lock and pension tax relief could be in jeopardy.

Ahead of the autumn Budget Statement on 17 September, Aegon pensions director, Steven Cameron, argued that care should be taken before "rushing into complex reforms", which could have damaging consequences longer term such as putting people off saving.

Although Cameron acknowledged UK’s "huge financial challenges" and the need to get the nation’s finances back on a long-term sound footing, it emphasised that individuals working to ensure they have sufficient pension savings also need the Chancellor’s continued support.

Cameron stated: “The Chancellor has a particularly challenging Budget to deliver this week, to ensure the UK returns to a position of financial soundness, offering stability and confidence to international markets and future generations. And he’s made it clear that we’ll all need to pay more in taxes.

"Against this backdrop, we’d call on the Chancellor to continue to offer appropriate incentives to individuals who want to get their personal finances on a long-term sound footing, including the millions who are investing or saving in pensions.

“As well as providing for themselves, those contributing to private and workplace pensions are reducing their reliance on the state to fund their future retirement.

"This should be welcomed as tomorrow’s state pensions aren’t paid for out of some huge fund built up in the past, but from the National Insurance contributions of tomorrow’s workers."

Although Cameron acknowledged that current economic challenges have highlighted "just how costly the state pension triple lock is", failing to honour the commitment "doesn’t sit well with protecting the many vulnerable individuals heavily reliant on the state pension".

“There’s little doubt that Chancellor Hunt, like many Chancellors before him, may be tempted to collect more in taxes by reducing the tax relief available on pensions," he continued.

"There may well be merit in spreading the tax relief granted more equitably across those on different income levels. But we urge care in rushing into complex reforms today which could have damaging consequences longer term such as putting people off saving.

“At times like these when the squeeze is being felt by almost everyone, offering incentives to put aside some of today’s scarce income to boost individuals’ future financial stability may be needed more than ever.”

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