Over 50s could use pensions to boost returns by up to 41.6% - 'Many could be better off'

NFU Mutual said the tax on withdrawal would be £1,500 - meaning £8,500 would be available - a boost of 41.6 percent compared to the ISA example.

For a higher rate 40 percent tax payer, creating a £10,000 fund, tax on withdrawal would be £3,000.

This would mean the cash available would be £7,000 - an increase of 16.6 percent compared to the ISA example.

The £10,000 fund figure arises from the investor paying £8,000 into their pension.

The provider would then claim £2,000 in tax relief direct from HMRC to create the fund of £10,000.

Then, the higher rate taxpayer reclaims an additional £2,000 back direct from HMRC because they're a higher rate taxpayer, giving a net cost of £6,000.