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Awareness of tax benefits grows

Awareness of tax benefits grows

Category: Pensions

Updated: 10/05/2013
First Published: 10/05/2013

MONEYFACTS ARCHIVE
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More people in the UK are tuning into the tax benefits of saving into a pension, according to a study by Standard Life.

The provider found 39% of people are aware that the Government automatically adds on £1 for every £4 invested into a pension by a basic rate taxpayer, compared with 29% of those surveyed in 2012.

Awareness was particularly high within the 45 to 54 age bracket (46%), although an encouraging number of young people are also sitting up and taking notice of the tax efficiency of paying into a pension plan.

Around 20% of respondents aged between 18 and 24 said they were aware of the benefits, up from 11% last year.

Standard Life's Julie Russell welcomed the findings and suggested that more people may consider investing in their future as the awareness of tax benefits and pensions becomes more widespread.

"This jump in the number of people who understand the tax advantage of investing into a pension is really positive news," she said.

"There's still work to be done, as three out of five adults have yet to wake up to the tax efficiency of pensions, and women are clearly lagging behind men in the awareness stakes. But it's good to know that understanding is on the increase."

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