Towers Watson, the consultancy firm, has voiced concern about the impact of the Chancellor's reductions in pension allowances.

Towers is particularly about the proposed cut in the annual limit on tax-efficient contributions to registered pension schemes from from £50,000 to £40,000.

Towers is also concerned about the reduction in the lifetime limit on tax-relieved pension savings from £1.5 million to £1.25 million from 2014/15. Several other organisations have voiced concern including the National Association of Pension Funds, warning that many more people will be caught by this than the Chancellor has indicated.

Stephen Green, a senior consultant at Towers Watson, said: "In 2010, the Government said that a £50,000 annual allowance would give people 'greater flexibility' over when they do their pension saving and would 'impact on fewer individuals on lower incomes' than the lower allowance figures it had been contemplating.

"It's equally obvious that a lower annual allowance will now catch more people on five- rather than six-figure salaries in final salary schemes, including public sector employees whose accrued pensions remain linked to final salary, and will make it harder for members to catch up on pension saving later in life when they have the money to spare.

"The Chancellor's comment in March that he would not be restricting tax relief 'in this Budget' turned out to be ominous.  It's understandable that the Treasury wants to keep its options open but pension planning would be easier if there was a firm signal that a third bite will not be taken out of this particular cherry."

On the lower £1.25 million lifetime allowance he said: "A £1.25 million lifetime allowance is equivalent to a defined benefit pension of £62,500 a year.  Under the pre-2006 'earnings cap' tax regime, people could accrue pensions of up to nearly £97,000, so this tax threshold has effectively now been reduced by about one third. At current annuity rates, a defined contribution pension pot of £1.25 million would buy a 65 year old a pension of about £47,000 with 3% increases and a 50% spouse's pension."

"Unlike the annual allowance cut, a lower lifetime allowance and the proposed protection system will stop some high earners from contributing to pensions altogether and make much more of their income taxable now rather than when they retire."

"It is welcome that the Government are proposing allowing members the chance to protect a lifetime allowance of £1.5m but the need to opt out of future pension saving to do so will be a very difficult decision for members to make.  Unlike the changes at A-day, these decisions will not be confined to a company's most senior executives.  Employers and pension schemes will need to carefully consider what guidance and support they can provide to help a large number of members with these decisions.
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• George Osborne's Autumn Statement will "help to fuel a bond bubble", meaning pre-retirees might need to "rethink their investment strategy" if they are to afford a comparable lifestyle in retirement, says the chief executive of the deVere Group. The warning from Nigel Green, the head of the independent financial advisory firm, comes as UK government bonds advanced following the Chancellor's 'mini-budget' this week.
Mr Green believes that pre-retirees should begin to "rethink their investment strategy" to enable them to enjoy an equivalent lifestyle once retired.
He notes: "In recent times, our understanding of risk has shifted and so-called 'lower-risk' assets may indeed provide regular income but, in the future, they might not be able to provide an adequate income.  Now could be the time to 'bite the bullet' and consider rebalancing investments, by reducing holdings of bonds and increasing exposure to well-diversified portfolios which could provide far better returns."