Individuals saved 18% extra into their Hargreaves Lansdown SIPPs within the present tax yr as much as the tip of December when in comparison with the earlier yr (April-December).
Excessive earners piled into pensions due to the annual allowance enhance and abolition of the lifetime allowance, the corporate stated.
HL’s information confirmed there was a 53% enhance within the variety of folks contributing greater than £60,000 (the present annual allowance) whereas the quantity contributing greater than £40,000 grew three-fold.
It stated folks modified their behaviour in response to modifications introduced in final yr’s Finances, particularly the will increase in annual and tapered allowances and the lifetime allowance abolition.
Jack Williams, head of pensions and retirement, Hargreaves Lansdown, stated: “It’s clear the rule modifications have breathed recent life into pension planning.”
The deadline to make use of allowances this tax yr is 5 April and he suggested excessive earners to think about using pension contribution allowances throughout their household. Individuals can add £2,880 to a SIPP annually for a non-earner, together with non-working spouses and kids, and the federal government will routinely pay £720 as tax aid.
In final yr’s Finances the federal government additionally took steps to assist individuals who have already flexibly accessed their pension to rebuild it by growing the cash buy annual allowance from £4,000 to £10,000 per yr.
It was a measure designed to assist those that both needed to entry their pension early to high up their earnings in addition to those that discover they should re-enter the workforce after having beforehand retired.
Mr Williams stated: “There are robust indicators the measure is working with the variety of folks contributing precisely £10,000 to their SIPP to date this tax yr greater than 50% larger than those that contributed precisely £4,000 in the identical interval final yr.”
