||<p>Tax relief on pension contributions is the primary means by which the Government
incentivises saving for retirement. The estimated exchequer cost arising from income
tax relief on contributions made to private pensions and relief on the investment
returns to private pensions in 2012-13 was £34.8bn<sup><sup></sup></sup>. Income
tax on pensions in payment in the same year was £12.0bn, resulting in a net cost of
pensions tax relief of £22.8bn in 2012-13.</p><p> </p><p> </p><p> This is published
in HMRC National Statistics table PEN6, available here: <a href="https://www.gov.uk/government/statistics/registered-pension-schemes-cost-of-tax-relief"
<br> Figures for 2012-13 are the latest available.</p><p> </p>