Pension tax relief isn't working well - how can we improve it?

For incentives to work, they must be understood – and that is not the case, says Baroness Ros Altmann

clock • 3 min read

Tax relief in its current form just isn’t working. It’s meant to offer an incentive to get us to save for retirement, but it is so complex that most people don’t understand it. Without knowing how it works and how valuable it is, it clearly cannot provide much incentive for increasing contributions.

This is a real shame, because the pension tax relief system costs the government more than £40bn a year when including national insurance relief - but these huge sums of money are not being well ta...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Defined Contribution

Partner Insight: 'Access was only the beginning' - three years on from the UK's first LTAF

Partner Insight: 'Access was only the beginning' - three years on from the UK's first LTAF

Debates around private markets in DC pensions have shifted from regulatory ambition to defining successful implementation. In this interview, Vikram Bhandari shares our insights from three years of managing the first-ever long-term asset fund (LTAF)....

Ryan Taylor, Head of UK DC Clients at Schroders and Vikram Bhandari, Head and Chief Investment Officer of Schroders Capital Solutions
clock 24 July 2026 • 12 min read
Partner Insight: The future belongs to scale – but there's more to it

Partner Insight: The future belongs to scale – but there's more to it

As the market consolidates, what does it mean for members and trustees?

Jerry Butcher, Workplace Savings Director, Scottish Widows
clock 22 July 2026 • 5 min read
Average employer AE contribution rates increase by 1.7% since 2012

Average employer AE contribution rates increase by 1.7% since 2012

IFS report finds AE employer contribution rates rose to 5.1% in 2024 up from 3.4% in 2012

Martin Richmond
clock 21 July 2026 • 5 min read
Trustpilot