'Radical alternatives' needed on pension tax-relief - report

The Pensions Policy Institute (PPI) report said the 25% tax-free lump sum available on retirement was "particularly valuable". It also highlighted that people who pay higher rate tax when working - and so get tax relief at the higher rate - but who pay basic rate tax in retirement get an even larger benefit. However, PPI director Chris Curry said despite the relief on contributions costing up to £35bn a year (after allowing for the introduction of auto-enrolment) tax relief remains poorly understood. He said: "There is little evidence that it encourages pension saving among low and me...