Savers to get extra £1bn in pension tax relief in 2016

clock • 1 min read

Consumers will net an extra £1bn in pension tax relief this year as more join workplace schemes, according to research from Prudential and website Unbiased.

TaxAction 2016 research shows the amount of lost tax relief will reduce to £1.9bn this year as more people are paying into pension funds. Last year 8.7 million people did not make any pension contributions, collectively wasting £2.9bn in 'lost' tax relief. This has now reduced to 7 million people paying nothing into pensions. Those still without pension contributions will miss out on an average tax relief of £568 annually, which is lower than the £698 recorded for last year. However, average annual contributions have decreased from £3,490 in 2015 to £2,840. The results follow re...

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