One in four higher rate taxpayers do not contribute to pension schemes despite the potential for relief on pensions to boost their retirement income, according to Prudential.

A survey of those earning between £42,275 and £149,999 a year carried out on behalf of the financial services company also found that 21% claimed they could not afford to contribute to a pension scheme.
One in eight (13%) said they did not see the point of retirement saving and 17% didn't know why they weren't saving into a pension scheme.
An average higher rate taxpayer contributing £425 a month into a pension fund receives basic rate tax relief of £85 a month or £1,020 a year directly into their pension fund. Up to an additional £1,020 a year in higher rate tax relief can be claimed as well for pension saving.
According to Prudential, based on this, around 216,000 workers are missing out on a total of £438m of tax relief by not saving into a workplace pension scheme.
Matthew Stephens, Prudential's tax expert, said: 'Pension saving offers valuable tax reliefs to all workers and particularly to higher rate taxpayers. Basic rate 20% tax relief is available at source plus us to an extra 20% from Revenue & Customs for higher rate tax payers.
He added: 'It is worrying that so many higher rate taxpayers say they cannot afford to save into a pension despite earning healthy salaries. The good news is that it is never too late to take action on saving for retirement and we urge all workers to seek advice on long-term retirement planning.'
Revenue & Customs' figures show that around 58% of the estimated 900,000 higher rate taxpayers in the UK contribute to defined contribution pension schemes, while another 15% are members of either non-contributory or defined benefit schemes.
Of those not saving into a pension scheme at all, Prudential's research found that 43% said they had made alternative retirement arrangements, 4% have existing self-invested personal pension schemes and another 2% said they would not retire.