Rich get 2,000% more in pensions tax breaks than poor

Nicola Brittain
clock

The well-off are receiving tax breaks on pension contributions worth on average 20 times those of ordinary workers, according to reports.

People in the UK earning more than £150,000 a year and paying into pensions attract tax relief averaging £12,000 annually. This compares with just hundreds of pounds for the typical pension saver, according to a report in The Telegraph. In some cases, top earners are pocketing pension relief worth £25,000 a year, close to average gross earnings in the country. The Telegraph's report was based on research which originally appeared on investigative news site Exaro. The research used government figures to calculate the 20-times multiple in average tax savings for the UK's highest earners...

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

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Andy Burnham clarifies stance on Waspi compensation

Andy Burnham clarifies stance on Waspi compensation

Burnham called for ‘recompense’ yesterday but now says he accepts final decision has been made

Martin Richmond
clock 11 June 2026 • 2 min read
'Scare tactics and jargon' alienating young pension savers

'Scare tactics and jargon' alienating young pension savers

People’s Pension research finds almost half of Gen Z do not engage with their pension

Martin Richmond
clock 02 June 2026 • 1 min read
IFAs warn gender pension gap goes beyond an investment problem

IFAs warn gender pension gap goes beyond an investment problem

‘Much of it is behavioural and structural’

Isabel Baxter
clock 12 May 2026 • 4 min read