Higher rate pension savers missing out on extra cash They have an average salary of £51,580 and make contributions of £425 each month on average. Basic rate 20 per cent tax relief is received automatically at source and is worth £85 on a monthly contribution of £425. But the additional 20 per cent relief available for higher rate taxpayers - which is unclaimed by most - is worth another £85 a month or £1,020 every year. Prudential. which commissioned the research, said that if people act before the end of January next year, they can claim for their pension contributions going back as far as the 201/11 tax year - if they are required to fill in a tax return. Those who don't need to do a tax return can claim for relief for as far back as the 2008/09 if they act before the end of October 2012. Members of occupational pension schemes receive basic and higher rate tax relief automatically through their payroll. But members of personal pension schemes, including GPPs (Group Personal Pension Schemes), SIPPs (Self Invested Personal Pensions) and stakeholder pensions, only receive basic rate 20 per cent tax relief automatically. They need to claim the additional relief through their annual tax return or by informing HMRC. Matthew Stephens, Prudential's tax expert, said: "It's astonishing that so many people fail to claim this valuable tax relief, which could help enormously in meeting the cost of retirement. Many tax experts feared that higher rate tax relief on pension contributions would be removed in the last Budget. Alex Henderson, tax partner at PWC, said: "Economic necessity makes such reliefs a tempting target for tax changes, so people need to make the most of them while they can. Many higher and top rate tax payers have seen their tax burden increase in recent years due to rises in national insurance and income tax, which comes on top of a general rise in living costs. Pension relief should be welcome relief.