Pensions have a number of tax advantages, but a new survey shows many savers are oblivious to them.
The majority of consumers are missing out on tax relief on their retirement savings, according to new research from Zurich. The financial services provider found that three-quarters of savers are unaware that they are eligible for tax relief on their pension contributions.
The research shows that younger consumers are the least knowledgeable when it comes to pensions, with 91 percent oblivious to the tax status of such savings. However, even older people are suffering from a lack of understanding of pensions and their tax advantages. Indeed, 69 percent of those aged 55 and over do not know about the tax breaks on offer.
Tony Solomon, business development director at Zurich, said: "Our results indicate that there is still a lot of work to be done in getting across the message about making the most of the tax advantages from saving within a pension. The UK as a whole is under-saving for retirement and this needs to be addressed."
According to the Financial Times, a survey carried out on behalf of Baillie Gifford revealed recently that 45 percent of UK adults are currently not putting any money aside for their retirement. Chris Fletcher, the head of retail investments at the investment trust manager, said the findings were "alarming", especially given increases in life expectancy.
