Few people are prepared to save enough of their salary in a pension to achieve a comfortable retirement despite knowing the 8% auto-enrolment minimum is not enough, a Friends Life survey has found.
The well-off are receiving tax breaks on pension contributions worth on average 20 times those of ordinary workers, according to reports.
Industry experts are "horrified" that the Liberal Democrats are considering cutting tax relief on ISAs and pension contributions for the wealthy.
People who are will to pay into a pension but have not got around to signing up are collectively losing out on £2.5bn in income tax relief on contributions, analysis has found.