Tax relief on pension contributions should be scrapped and replaced in favour of a simple matching savings scheme, according to think tank ResPublica.
The non-partisan organisation, set up by director Phillip Blond, said tax relief had cost more than £48bn but had not helped boost pension saving.
Speaking on the issue, Blond said a new mass savings vehicle, which could become a tool for widespread investment, would provide a fairer alternative.
"Tax relief has amounted to a total of £48.4bn in the UK," Blond said. "It has not worked and has not delivered the vast majority of the population any saving. The system has produced a net investment return of minus £17.5bn."
Blond added: "We need to get rid of this and get in a mass savings scheme. A genuine mass savings account system would solve the semi-funding crisis that conspires against jobs in the UK," Blond said. "What we've got now only aids the rich getting richer."
Blond likened the possible new system to the current system in Australia, in which all tax breaks have been removed, as the country currently employs a simple matching savings scheme.
ResPublica is not the first think tank to attack pensions tax relief. In November last year, Reform said pension tax relief is an "expensive" and "poorly targeted" policy which could be reformed to help balance the country's budget.
Provider Aviva has also said the distribution of relief should be reassessed to make pension saving genuinely favourable for moderate earners.
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