Low income earners in the majority of master trusts are missing out on tax relief on their retirement savings due to a legislative technicality, according to research.
While master trusts have grown to represent over 35% of the workplace savings market and account for the savings of over seven million defined contribution (DC) scheme members in the UK, only three of the top 17 offer the ability for their lowest paid members to claim additional pension tax relief, Hymans Robertson found. The consultancy's paper, Mastering Master Trusts, showed workers earning below the £11,850 income tax threshold but over the £10,000 minimum level for auto-enrolment (AE), could be missing out on a 20% government bonus to their retirement savings because of a "tax anoma...
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