Pension tax relief isn't working well - how can we improve it?

For incentives to work, they must be understood – and that is not the case, says Baroness Ros Altmann

clock • 3 min read

Tax relief in its current form just isn’t working. It’s meant to offer an incentive to get us to save for retirement, but it is so complex that most people don’t understand it. Without knowing how it works and how valuable it is, it clearly cannot provide much incentive for increasing contributions.

This is a real shame, because the pension tax relief system costs the government more than £40bn a year when including national insurance relief - but these huge sums of money are not being well ta...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

More on Defined Contribution

Don't lose sight of the member in the quest for value for money

Don't lose sight of the member in the quest for value for money

Daniela Silcock says we need a proper breakdown of the costs of reform

Daniela Silcock
clock 25 March 2025 • 3 min read
Aon DC tracker shows uptick in Q4 retirement outcomes

Aon DC tracker shows uptick in Q4 retirement outcomes

Tracker rose from 64.6 to 69.2 during the last three months of 2024

Holly Roach
clock 19 March 2025 • 2 min read
Smart Pension surpasses 1.5 million members

Smart Pension surpasses 1.5 million members

Master trust provider says it is experiencing rapid growth

Jonathan Stapleton
clock 13 March 2025 • 1 min read
Trustpilot