Brits saving for their retirement are losing out on an extra £720 million in tax relief by not making additional pension contributions, it has been claimed.
According to research by Unbiased.co.uk, people with a company pension scheme are missing out on sums of cash by failing to save in the most tax efficient manner and making Additional Voluntary Contributions (AVCs).
The firm states that AVCs run alongside employers' pension schemes and enable workers to pay extra into their pension, with these extras benefiting from the same tax relief as amounts saved in the main pension scheme.
David Elms, chief executive of Unbiased.co.uk, advised people to have a chat with an independent financial advisor to make sure they are getting most out of their pension pot.
Last week it was asserted by the National Association of Pension Funds that workers' increasing knowledge of pensions would help boost confidence and take-up in schemes.
These comments came after the body's Workplace Pensions Survey found that 60 per cent of workers are unsure how much their firm would contribute to their company pension .
Brits need to make tax-efficient pension savings, expert claims
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Brits need to make tax-efficient pension savings, expert claims
Tue, 16 Jun 2009
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1998 - 2009 UK Pensions - Planning before, at the onset and during retirement.
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