The past decade has certainly seen a shift away from the halcyon days of “banker bonuses” and “Employee Benefit Trusts” towards a more sustainable model of increased basic salaries and bonuses paid as a combination of stock and cash. It is also true that annual remuneration in the Banking sector is still hugely varied.

With the credit crisis of 2008 still clear in our memories and redundancy still common place in the sector, job security is sadly not something that many of our clients feel. Tax planning instruments such as pensions have also become less attractive for high-earners.

Since 2010/2011, the annual pension allowance has been reduced by 98%, thus removing the ability for Bankers to contribute part of their bonuses into pensions and receive 50% tax-relief. This is further magnified by a 40% reduction in the pensions lifetime allowance. Like so many industries, technology is affecting the human role, creating uncertainty in both earnings and career longevity.

Sadly, none of this makes for happy reading but these are the challenges that our client’s face.