Three quarters of consumers do not understand they can pay less tax by putting money into their pension, according to research carried out by Irish Life and Permanent.
The company claims the finding means the Government's current policy on encouraging people to invest in their pensions is having little real impact.
The Government has allowed generous tax breaks for people who put extra money into their pensions as there is a growing concern that many are not providing enough for their retirement.
Today's research shows only 25% of a sample of 1,200 adults surveyed understood the system. The current regime allows people to put extra cash into their pensions without paying tax on the money. The survey found twice as many people grasped how SSIA savings systems worked.
Irish Life and Permanent says people believe the pension system is overly complicated and confusing and this is blocking them from investing in retirement.
