![\"Katie](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/03\/AMENDED-2-NEW-DX-GRAPHICS-MARCH-2026-6822903.jpg\" "\\"Katie")
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Katie Elliott On the Money (Image: EXPRESS) This article contains affiliate links, we will receive a commission on any sales we generate from it. Learn more<\/a> <\/p>\n Nearly nine in 10 Brits are in the dark about one of the most generous perks in personal finance \u2013 pension tax relief<\/a>. New research from PensionBee suggests 88% don\u2019t know the rate they receive, which is concerning, when we\u2019re just under two weeks away from the April 5 tax-year deadline.<\/p>\n This is a striking blind spot, with only 12% of working-age adults able to correctly identify their own rate of tax relief, while 75% admit they don\u2019t really understand it at all. Even more surprising was that nearly 31% of people didn\u2019t realise pensions come with tax relief<\/a> in the first place. If you\u2019re in the seeming minority that is clued up on relief, please stick with me, because you may be in another group that unknowingly needs to claim more of it.<\/p>\n In a nutshell, pension tax relief means the Government tops up contributions made to your pot. For most savers<\/a>, every \u00a3100 invested costs a basic-rate taxpayer \u00a380, as 20% tax relief is applied. Higher-rate taxpayers pay \u00a360 for the same investment, with 40% tax relief applied, while additional-rate taxpayers pay just \u00a355, with a 45% relief applied. Pensions are one of the few places where your money gets an instant, guaranteed boost.<\/p>\n Read more:<\/strong> Retirement expert unveils four tips to boost your pension pot – \u00a3342 each year <\/a><\/p>\n The new tax-year will begin on April 6, 2026 (Image: Getty)<\/p>\n That\u2019s why they remain one of the fastest ways to build long-term wealth. As long as you keep within the annual allowance \u2013 which is typically the lower of \u00a360,000 or 100% of your earnings \u2013 contributions benefit from relief at your highest marginal tax rate.<\/p>\n However, not everyone gets the full relief automatically<\/a>. If you\u2019re paying into a personal pension using the \u201crelief at source\u201d system, only basic-rate relief is added upfront. Higher and additional rate taxpayers must claim the extra relief via HMRC, either through self-assessment or its online service.<\/p>\n Many people don\u2019t know this step is required, which has led to billions of pounds in unclaimed relief over the years. A Freedom of Information request from LCP partner Steve Webb estimated that around \u00a31.4billion in pension tax relief went unclaimed in the 2023\/24 tax year.<\/p>\n However, it should be noted that for most higher earners in workplace schemes, no extra claim is usually necessary.<\/p>\n There are other little-known boosts, too, such as carry-forward rules. These let you use unused allowances from the previous three tax years – potentially allowing contributions above \u00a360,000 \u2013 provided you had a pension in place and don\u2019t exceed current annual earnings. When the new tax-year starts on April 6, 2026, any unused allowance from the 2022\/23 tax year will expire forever, which could cost you thousands in lost tax<\/a> efficiency.<\/p>\n Pensions aren\u2019t just about saving cash; they\u2019re about maximising free money, and with the tax deadline approaching, grasping the rules and utilising allowances could make a meaningful difference to your retirement<\/a> pot.<\/p>\n Deal of the week<\/p>\n The Co-op is offering a steal of a deal<\/a> for those hosting an Easter Sunday roast. Members of its loyalty scheme can get a whole British chicken, baby potatoes, carrots and Yorkshire puddings for \u00a35 (or \u00a35.98 for non-members).<\/p>\n The bargain is available until April 14 through Co-op\u2019s same-day delivery online platform, shop.coop.co.uk<\/a>. Just use the code ROASTDEAL at checkout.<\/p>\n Millions at risk of overpaying<\/p>\n Nearly six million households need to submit an energy meter reading<\/a> by the end of the month to avoid overpaying in April. If you\u2019re on a standard variable tariff, this applies to you.<\/p>\n![\"Senior](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/03\/senior-man-opening-hmrc-tax-letter-6823009.jpg\" "\\"Senior")
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