Recent reports show there is a high lack of awareness amongst executives regarding their tax relief entitlements and many are failing to claim back their full tax relief on pension contributions.
Recent research which found that nearly six out of ten higher rate taxpayers – those on salaries between £44,871 and £160,500 – are not cashing in on the full incentives made available by the Treasury to encourage saving for life after work was reported in the Herald .
This could be worth an additional £1,020 every year to a higher rate taxpayer.
The article explores the impact that this could have on pension payouts for retirees in the future.
Independent Financial Adviser at Morton Fraser, Chris Ness commented “The income tax relief is arguably the main benefit of saving in a pension, and not to use this fully is a missed opportunity in my opinion.”