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Seventy-five
per cent of UK employees are unaware of the tax relief ruling that
applies to their pension contributions, according to new research
from Zurich.
The age group which was found to be most in the dark was the 25
to 34 year age bracket, with 82 per cent admitting that they were
unaware of tax relief opportunities in pensions. Over two thirds
(69 per cent) of those aged 55 years and over, and so approaching
retirement, did not know that there were tax advantages to a pension.
Women, however, were found to be the more uninformed gender, with
only one fifth aware that pensions qualify for tax relief, compared
with 30 per cent of men.
Tony Solomon, business development director at Zurich, commented:
“Our results indicate that there is still a lot of work to
be done in getting across the message about making the most if the
tax advantages from saving within a pension.
“The UK as a whole is undersaving for retirement and this
needs to be addressed. Providers, the government and advisers must
work together to help people understand the importance of saving
for a decent income in retirement. Increased confidence will, in
part, come with increased understanding.”
- Pensions
Age November 2008
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