Three quarters of people do not understand that they can pay less tax by putting money into their pension, according to research from Irish Life & Permanent.
The company said the finding meant the Government's current policy on encouraging people to invest in their pensions was having little real impact.
The Government has allowed generous tax breaks for people who put extra money into their pensions, due to growing concerns that Irish people are not providing enough for retirement.
Today's research showed that only 25% of a sample of 1,200 adults surveyed understood the system. The current regime allows people put extra cash into their pensions without paying tax on the money. The survey found that twice as many people grasped how the SSIA savings system worked.
Irish Life & Permanent said people believed the pension system was overly complicated and confused.
