CHANCELLOR Rachel Reeves will announce the autumn Budget this week (Wednesday, October 30), marking the first time a Labour government has had control of the Budget since 2010.
It's expected that Reeves is aiming to generate funds of £20 billion for public services through the likes of raising employers' national insurance tax and hikes in capital gains tax.
With speculation around the rise in specific taxes, there are suggestions that the Chancellor will change how pensions are taxed in the Budget.
According to the BBC, some experts have shared that Reeves could change the system around the workplace or private pensions.
Do Pensioners pay tax?
How could the budget affect pensions?
Currently, if you are aged 55 and have pension savings, you can take a quarter of the money as a tax-free lump sum with a maximum amount of £268,275.
However, the Chancellor has considered lowering the cap according to reports, meaning that people will likely have to pay more income tax when they take their pension.
But, there are still questions about how much more money this could actually make the government.
There has also been speculation around introducing a single rate of pension tax relief, reports the BBC.
At the moment your pension tax refund is the same rate as your income tax bracket, with the basic at 20%.
That means that those with a higher rate will receive a more generous tax relief, at 40% or 45%.
READ MORE: Tributes paid to 'dear friend' Alex Salmond at funeral
However, in rumoured Budget plans, the Labour Government could make the relief more fair, with a flat rate of 25%.
The change could benefit lower-earning employees who get a 20% relief in helping reduce their overall tax bill.
But, taxpayers with a higher rate and an annual income of £50,000 could lose out, due to a lower tax relief for them.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here