Retirement savers in the UK are missing out on an extra £720m in tax relief by not making additional pension contributions.
High-rate taxpayers who are members of their employers' occupational pension scheme will miss out on an extra £720m tax relief this year by failing to make Additional Voluntary Contributions (AVCs).
AVCs allow employees to pay extra funds into their pension which should result in a larger pension pot at retirement.
David Elms, chief executive of Unbiased.co.uk, comments: "Failing to save for retirement has become an increasing problem for the UK population. The onset of the credit crunch has further compounded this problem as the value of people's pension funds is decreasing and they are also finding their money doesn't go as far as it used to."IFAonline.co.uk
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