People do not understand or value tax relief on offer for pension contributions, and would welcome a flat rate of relief, according to two pieces of research.
Research from Hargreaves Lansdown and Aviva has revealed two thirds of workers do not understand the system, but a flat rate would be popular.
This comes as the government consults on a complete overhaul of the tax treatment of pensions.
There was widespread support for a flat rate of 33%, even among the 45% taxpayers who would lose out from the move, according to Hargreaves Lansdown, which surveyed 2,300 investors.
Head of pensions research Tom McPhail said: "The Chancellor has created a rare opportunity for a simpler, fairer and more stable pension system which encourages everyone to take responsibility for their own retirement provision. This means building on last year's freedom reforms and putting the individual at the heart of pension saving."
Similarly in a study of 2000 workers in the UK by Aviva, it was that found 66% had no or scant understanding of how the system worked.
Up to one in ten had never heard of tax relief and almost half believed the language used was unclear.
Aviva chief executive of UK and Ireland Andy Briggs said: "It is a worry. A pension can be one of the biggest investments a person makes in their life. If they don't understand the incentive to save that is being offered then this needs to be changed. It's no wonder many people question the value of saving into a pension when two thirds admit they have very little understanding of the current system of pension tax relief."
The government consultation has been championed by the Trades Union Congress.
However, others have raised concerns the government has already made up its mind to scrap upfront tax relief completely.
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