Time and again, millions of us have seen our carefully laid plans for retirement thrown into chaos by incessant tweaks and tinkering to the pension rules by previous governments.

Sir Keir Starmer’s government will be no different. There will be a review of the pensions system – that we know for sure, as a key pledge in the Labour manifesto.

But with Labour securing a huge majority, their promised pensions review has the potential to be far more radical than previously expected, industry experts have warned The Mail on Sunday.

The party now has a serious mandate to pursue drastic reforms to some of the thornier pension issues. Economists say that a Labour government will come under pressure to increase wealth and pension taxes to get national debt under control and meet funding targets.

Chancellor Rachel Reeves has said Labour would not raise income tax, National Insurance or VAT. She has also pledged to uphold the state pension’s triple lock. However, she has made no such commitment over private pensions.

Nor have there been assurances on other extreme pension reforms that have been previously floated by key members of the Labour Party. There are fears she could mount a pensions raid on the retirement savings of nine million workers. She could cut the 25 per cent tax-free lump sum that people can take from their pensions, make pensions taxable upon death, slash tax relief on employee pension contributions, lower the cap on how much can be put into a pension each year or over a lifetime.

The party’s silence has done nothing to put these fears to bed. And history should serve as a stark reminder of how quickly these changes can be pushed through. In 1997, one of New Labour’s first acts was to axe the tax relief on the dividends pension funds received on investments.

That tax raid, which was not mentioned in its manifesto, swallowed £5.6 billion a year out of the pensions system and led to the downfall of final salary-based pensions in the private sector.

So, what can you do to protect your retirement savings if Labour pushes ahead with drastic reform?

Pay as much as you can into your pension

The amount you are allowed to pay into your pension each year could be slashed.

At present, you can contribute up to £60,000 a year into your pot and receive tax relief. This is known as your ‘annual allowance’.

Similarly, the amount of tax relief you receive for every £1 you put into your pension could be cut back. Currently, you receive tax relief on any money you contribute at your marginal rate of income tax. This means, for example, that a basic rate taxpayer receives 20 per cent tax relief on any money that goes into their pension, a higher rate taxpayer receives 40 per cent and an additional rate taxpayer 45 per cent.

Rachel Reeves has previously indicated she would consider replacing this with a flat rate of tax relief at 30 per cent.

A Labour spokesman has in recent weeks said that the party had no plans to change the current tax relief system, but no promises have been officially made.

Michelle Holgate, a financial planning director at wealth manager RBC Brewin Dolphin says: ‘One potential outcome of the Labour Government is a flat rate of tax relief being applied on pension contributions. Should this be reduced from the current relief level which is applied at someone’s highest marginal rate of tax, then this could lead to a double tax position for those in the higher or additional rate tax thresholds.’

If you are concerned, you could increase the amount you pay into your pension to make use of your allowances ahead of any potential changes.

This means that if the amount you can pay in each year is slashed or tax relief is cut back, you will have been able to make a larger contribution and receive the full amount of tax relief beforehand.

You can also carry this allowance forward if you haven’t used it all for the past three years – and use this loophole to pay more in today.

Jason Hollands, of wealth manager Evelyn Partners says: ‘Make hay while the sun shines. It makes sense to utilise pensions as fully as possible while the current attractive tax reliefs continue to exist and not to take them for granted.

‘If you have got the funds available to make a contribution you shouldn’t hold back from doing that now.’

Speed up plans to access tax-free cash

In a worrying gaffe that the Tories pounced on ten days ago, Starmer mistakenly said he would scrap the tax-free lump sum on pensions if he won the General Election during an interview on BBC Radio 5 Live.

Labour has insisted the Prime Minister made an ‘old fashioned mistake’ and that there were no plans to get rid of the allowance.

However, it has stoked fears that the cut may be on the cards in future, as the effect would be disastrous to the retirement plans of millions of workers.

The tax-free lump sum is a cherished rule in the pension system that allows anyone over the age of 55 to cash out the first 25 per cent of their pot without any tax liabilities. The most you can take is £268,275.

Calculations for Wealth & Personal Finance by wealth management firm True Potential show that if Labour decides to scrap this, pensioners could be left £23,000 worse off over the course of their retirement. This is based on a pension pot of £460,000, which the wealth manager claims would secure you with a comfortable retirement.

However, any higher earners who took the 25 per cent as a lump sum in one go, cashing out £115,000, could face an immediate tax bill of over £45,000 that they would not have otherwise paid. This is because all money drawn out of a pension would be subject to a person’s marginal rate of income tax.

Scrapping this allowance could mean that many pensioners exceed the personal allowance threshold – the level at which you start to pay income tax – leaving them at risk of a higher income tax burden, True Potential warns.

Neil Rayner, head of advice at the group, says: ‘While Britons should be wary of withdrawing large sums from their pension pots prematurely, scrapping the tax-free cash allowance could leave pensioners vulnerable to an increased tax burden.

‘For those already on low annual incomes, this could have a significant impact on their livelihoods, especially as they may have structured their finances around current rules.’

Scrapping the tax-free cash allowance could also remove flexibility for pensioners who might like to use their allowance to pay off mortgage or other debts.

Rayner adds: ‘The ability to access this tax-free amount provides a crucial safety net, and without it, pensioners could face unforeseen financial challenges that could diminish their quality of life in retirement.’

Those who planned to withdraw their lump sum in the coming year or two, for example to pay off a mortgage, should consider biting the bullet and taking the money now, says Hollands.

‘It makes sense to take the money if your intention was to cash it in anyway and you are simply accelerating plans,’ he says.

However, it is important that you do not make any knee-jerk reactions and cash out your pension lump sum if you had no pre-existing plans for the money as you could forego inheritance tax privileges, says Holgate. You may be giving up better investment returns too, particularly if you leave the money in a low-paying savings account.

Consider IHT planning against death duties

PENSIONS are not currently subject to any inheritance taxes upon death, as they do not form part of your estate. This has made them incredibly tax-efficient vehicles for passing wealth down to the next generation.

But experts warn this could soon come into the Chancellor’s crosshairs. Tom Selby, director of public policy at stockbroker AJ Bell, says: ‘The one area where Labour could say the rules are quite generous is the taxation of pension on death. It isn’t beyond the realms of possibility that they will look into taxing that.’

This would have a major impact on many people’s inheritance plans, Hollands says.

‘If some steps were taken to levy inheritance tax on the transfer of pension assets, this would probably lead to a widespread draining of drawdown pots, and a lurch towards other assets and tactics that mitigate against IHT, which at 40 per cent is quite significant.’

If announced, you could start to draw more out of your pension today and make lifetime gifts to your family to try to shield the savings from death duties, he advises.

Lifetime Isa to shield you against changes

Younger savers under the age of 40 can increase their retirement savings with an account called the Lifetime Isa (Lisa).

Sarah Coles, of Hargreaves Lansdown, suggests opening one of these as an alternative to a pension to mitigate any changes to tax relief. These accounts are designed to be used to save for retirement or to buy a first home worth up to £450,000. The government adds a 25 per cent bonus onto any savings you make, up to £1,000 a year.

She says: ‘This way you have secured your access to the Lisa, and if anything changes around pension taxation, you will have an additional option for retirement saving.’

Ignore the noise and plan for the long term

A pension fund is built across the whole of a working lifetime and must be viewed through a long-term lens. It is crucial that you do not make any sudden decisions that cause damage, especially based on speculation.

Any overhaul of the pensions system would take time to implement and is unlikely to be sprung on savers, Hollands says. This means you still have time to make decisions and do not need to rush into anything.

Selby says: ‘It is vital savers and investors ignore the noise ahead of Reeves’ first major fiscal set-piece, likely in September or October, and focus instead on their long-term goals.’