The Economic and Social Research Institute says reducing pension tax relief to a single rate of 30% would save the Government €500m in lost taxes.
The think-tank says this would encourage more middle and lower income earners to save for their own pensions.
The ESRI has looked at what might happen to pension savings if tax relief was reduced to either the standard rate of 20% or a new 'hybrid rate' of 30%.
It believes the second scenario encourages more savings by lower income earners, yields more tax to the state and will not discourage top earners from putting money aside for a pension.
The new programme for Government settled on a 33% hybrid rate to encourage this rebalancing in favour of middle and lower earners, but there is no firm date for when it will it be introduced.
The pensions industry is urging caution on the changes, with a report for Irish Life on Monday claiming it could make the country less attractive for business.
