Employer contributions to personal pensions have grown faster than payments made to occupational schemes over the last five years, according to figures from Her Majesty's Revenue and Customs (HMRC).
The figures show tax relief on employer payments to defined benefit (DB) schemes doubled in the last five years from £6.7bn to £13.3bn. However, over the same period tax relief on employer contributions to personal pensions grew by 130% from to £1.63bn. The average rate of tax relief on contributions has now reached 29%, according to the Revenue. Commenting on the findings, Standard Life says total contributions to personal pensions have reached almost £12bn a year after adding in the £1.8bn tax relief received by employees in 2006 to 2007. Andrew Tully, marketing technical manager a...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes