New concurrency rules mean up to £46bn extra tax relief can now be claimed by occupational scheme members, says Clerical Medical.
It says the new rules introduced on A-Day mean that everyone can invest up to 100 per cent of their taxable earnings in pension plans and claim tax relief up to £215,000.
Clerical estimates that, based on 9.8 million people being members of occupational schemes and national average earnings of £27,940, the total potential tax relief available has rocketed to £60.3bn compared with £14.3bn before A-Day.
It says many advisers fail to fully use the opportunities afforded by the concurrency rules, particularly with the end of the tax year fast approaching. Clerical says advisers should encourage clients to top up their retirement funds in a personal pension.
The firm has produced a guide for intermediaries on concurrency which contains advice on top-up options, a checklist of considerations and an advice process flowchart.
Channel manager Martyn Nethercott says: “I think there is a general awareness of these new rules but they have not been fully exploited.”