Pension Salary Sacrifice Cap. What It Means For Your Legal Planning

Posted 02 Dec, 2025

From April 2029, the amount you can put into a pension using salary sacrifice without tax will be limited to two thousand pounds. This is a financial rule, but it often leads clients to think about the bigger picture of their long term planning. When people adjust how they save for later life, they usually look again at their wills, property arrangements and the steps they have taken to protect themselves and their families.

We do not give pension or investment advice, but we do help clients make sure their legal arrangements match their future intentions.

How Pension Changes Can Affect Your Will

Changes in how people save for retirement often affect how they want their estate divided. If you are altering contributions, reviewing other assets or shifting how your savings are structured, it may be a good time to check that your will still reflects your wishes. A will may need updating if you have:

• new assets you want to include,
• changed your views on who should inherit,
• updated or replaced pension nominations.

A clear and current will makes things easier for the people who will handle your affairs.

What This Means For Probate

When clients change how they prepare for retirement, the overall shape of their estate can change over time. This can affect how straightforward probate will be. Even though pension values are usually handled differently for tax purposes, executors still rely on:

• up to date wills,
• organised documents,
• clear information about assets.

Keeping your paperwork in good order helps avoid delays or confusion during probate.

How Property Decisions May Shift

If clients change long term savings habits, they sometimes adjust their property plans too. This could involve buying, selling or transferring property within the family. We do not advise on the financial reasons behind those choices, but we do handle the legal work required, including:

• property sales,
• transfers of equity,
• updating ownership arrangements.

Good legal documentation ensures your property reflects your plans for the future.

Why LPAs Are Worth Considering

When clients rethink their long term planning, they often realise how important it is to have someone they trust to step in if they ever lose capacity. A Lasting Power of Attorney lets you choose who can make decisions about your property, finances or health if you cannot. Many clients put LPAs in place at the same time as reviewing their will or property arrangements to keep everything coordinated.

What Clients Should Consider Now

Although the cap on salary sacrifice is a pension rule, it can prompt sensible conversations about wider planning. It is a good time to check:

• whether your will is still suitable,
• whether your executors and attorneys are the right people,
• whether your property ownership reflects your goals,
• whether your records are easy to follow.

Taking these steps now helps protect both you and the people who may need to manage your affairs in future.

If you would like support with wills, probate, conveyancing or LPAs, our Private Client team is here to help you plan with clarity and confidence.