Today’s Budget saw a confirmation that changes to pensions tax relief provided to the highest earners will come into effect in 2016.

From next year their Annual Allowance will be tapered away to a minimum of £10,000.

George Osborne also signalled a consultation on further pensions changes.

He said: “While we’ve taken important steps with our new single tier pension and generous new ISA, I am open to further radical change.

Pensions could be taxed like ISAs. You pay in from taxed income – and its tax free when you take it out. And in-between it receives a top-up from the government.

“This idea, and others like it, need careful and public consideration before we take any steps. So I am today publishing a Green Paper that asks questions, invites views, and takes care not to pre-judge the answer.”

Dean Mirfin, technical director at Key Retirement, said: “The change in the annual pension contribution limit for those with incomes over £150,000 may seem trivial but older workers who are trying to fund their pensions in the lead up to retirement, who have good levels of income, will be punished at a time when they should be encouraged to contribute as much as possible.”