Nearly three quarters of pension savers do not understand or have not heard of tax relief according to research.
The study carried out for the People's Pension by YouGov found that 59% of pension savers had heard of tax relief but did not have a good understanding of what it meant, while 15% had never heard of it.
The provider suggested the government's consultation into tax relief was an opportunity to raise awareness about it and spur people to save more.
People's Pension director of policy and market engagement Darren Philp (pictured above) said: "This research confirms that tax relief is not well understood and calls into question whether it is really acting as an incentive to save. Incentives only work where they are clear and understandable. Unfortunately the current system is just not up to the job."
It also revealed 62% would be more likely to increase the amount they saved if the government matched their contributions.
However research by the People's Pension last week showed a staggering 89% of scheme members did not know what charges they paid to their pension provider and this had to be cleared up.
Philp added "The government needs to think carefully about how it rewards people to lock money away, sometimes for decades, and make sure that it does so in a fair and consistent way. We need a system that treats all forms of savers, no matter whether they save in a defined benefit or defined contribution scheme, equitably."
The survey was conducted online via the YouGov panel.
Fieldwork was carried out among 1,794 working adults aged 65 and under who are currently contributing to a pension between 18 and 20 August 2015.
The Pensions Regulator (TPR) has substantially increased the usage of its powers against trustees – posting a sharp rise in the use of formal information gathering powers and High Court production orders during the three months to the end of September....
The Pension Schemes Bill has completed its third reading, crossing its latest hurdle in the House of Commons.
An amendment to the Pensions Schemes Bill which would have seen people given a pre-booked Pension Wise appointment ahead of accessing their retirement savings has been defeated.
A proposal to ensure savers receive a Pension Wise appointment prior to accessing their retirement pot has received cross-party support in parliament, while Labour seeks net-zero pensions by 2050.
Pension scams are not just about the money lost, but the lives devastated, says Nicola Parish, so the industry must unite to defeat this scourge.