Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • June 2014
06

Higher earners 'missing out on pension tax relief'

Open-access content Tuesday 10th June 2014 — updated 5.13pm, Wednesday 29th April 2020

Some £225m in tax relief is going unclaimed every year because a tenth of higher rate taxpayers are not paying into a pension, according to Prudential.

The company surveyed more than 300 higher-rate taxpayers and found that one in ten ­- equivalent to around 90,000 people - do not make a personal contribution to a pension and subsequently miss out on tax relief.

Prudential noted that those people who make additional personal contributions to their defined contribution pensions, pay in around £523 gross, receive tax relief of just over £200 a month or more than £2,500 a year.

Clare Moffat, a tax specialist at the firm, said: 'Saving into a pension offers valuable tax relief to all workers and particularly to higher rate taxpayers. With a lower threshold for higher rate tax more people stand to benefit from extra tax relief on pensions contributions. However, our research shows that significant number of higher rate taxpayers are passing up the opportunity to receive an extra helping hand with their future retirement income.'

Prudential's research also found that 15% of those surveyed do not know whether they claim tax relief or not. Another 6% said they do not make any additional contributions to their company pension scheme and therefore miss out on valuable tax relief.

The majority (59%) paying into DC group pension schemes do claim or receive the additional tax relief into their pension fund, the insurers said.

This article appeared in our June 2014 issue of The Actuary.
Click here to view this issue
Filed in
06
Topics
Pensions

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Environmental, Social and Governance- GI Actuary

England, London
£70000 - £170000 per annum
Reference
145888

Calling All Australian Actuaries

England, London
£50000 - £120000 per annum
Reference
145887

Calling all GI Actuaries looking to move into contracting

England, London
£700 - £1000 per day
Reference
145886
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ