Tax breaks on pensions fuel rich-poor divide, new figures show
Top earners each receive 20 times more tax relief on pensions than ordinary workersBy Steve Lodge | 6 November 2012 | 1 Related piece
It is rather perverse to give the most tax incentive to people who need it least
Ros Altmann, director general, Saga
Top earners are receiving tax breaks on pension contributions worth on average 20 times those of ordinary workers, according to analysis by Exaro.
People in the UK earning more than £150,000 a year who also pay into pensions attract tax relief averaging £12,000 annually. This compares with just hundreds of pounds for the typical pension saver.
Exaro used government figures to calculate the 20-times multiple in average tax savings for the UK’s highest earners. Specialists in the field say that it shows how pension relief for top earners is ripe for reform.
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