To encourage saving for retirement, the government pays tax relief on pension contributions. This means that your pension provider can claim tax back from HM Revenue & Customs (HMRC) and add that amount to each contribution you make.
But this fundamental aspect of pensions remains a mystery to many people. 27% of people admit they have never even heard of tax relief, according to new research .
Findings identified that only 15% of those surveyed said they fully understood how tax relief on pension contributions work. 27% said they had heard of pensions tax relief but did not know how it worked.