The UK's pensions industry breathed a sigh of relief this afternoon as it learned the Chancellor of the Exchequer, George Osborne, would not be tinkering with tax relief on high earners' savings. But middle-income pensioners, by contrast, could end up being among the biggest losers from the Budget.

The Chancellor scotched previous speculation that the annual limit on tax-free pension contributions could be cut from £50,000 a year to £40,000. Osborne said there would be "no further changes" to the £50,000 limit, benefiting high earners who want to shelter from tax by saving money into a pension fund.