Savers rushing to top up their retirement pots before the end of the tax year risk making common mistakes that could leave them seriously out of pocket.

Each year, pension advisers see the same errors repeated in March, from missed tax relief to accidentally restricting future pension contributions. In some cases, savers overlook little-known allowances that could add thousands of pounds to their pension – while others unknowingly trigger rules that limit what they can pay in. Here are the most common pension pitfalls experts say people should avoid before the tax year closes.

Overlooking family pension contributions

Many people assume pension tax relief is only available to those earning an income – but that is not the case.

A non-working spouse, low-earning partner or even a child can receive pension contributions of up to £2,800 a year, which the Government tops up to £3,600 with tax relief.

Ignoring the £100,000 tax trap

High earners can face an unexpectedly steep tax bill if they fail to use pensions strategically.

Those earning between £100,000 and £125,140 can effectively lose 60% of every extra pound to income tax.

This happens because they pay 40% tax and also lose £1 of their £12,570 personal allowance for every £2 earned.

Chris Eastwood, chief executive of Penfold, told the I paper: “Between £100,000 and £125,140, the tax system quietly becomes very expensive.

“A pension contribution before April 5 can reduce adjusted net income, which can pull earnings back below the taper and recover some of what would have been lost.”

Forgetting pensions in divorce

Pensions are often among the largest assets couples hold – but they can be overlooked during divorce settlements.

Former pensions minister Ros Altmann warned that separating couples should ensure pensions are properly valued rather than ignored.

Failing to do so could mean missing out on a significant share of retirement savings.

Not using your full pension allowance

One of the biggest missed opportunities is failing to take advantage of unused pension allowances.

The annual pension allowance currently stands at £60,000 or 100% of earnings – whichever is lower.

However, savers can also carry forward unused allowances from the previous three tax years, potentially allowing a much larger contribution.

Paying into a loved one’s pension

Similar rules apply to carers or relatives who may not currently have earnings.

Someone else – such as a partner – can contribute up to £2,880 a year into their pension.

HMRC then adds tax relief, boosting the total contribution to £3,600.

The same approach can also be used for children or grandchildren, allowing retirement savings to build up over decades.

Failing to sacrifice a bonus

An annual bonus might feel like a windfall – but it can also push someone into a higher tax band.

It may even trigger extra charges such as the high income child benefit charge, which starts when one parent earns more than £60,000 a year.

Consequently, diverting a bonus into a pension can help an individual being dragged into a higher tax bracket.

Accidentally slashing your allowance

Some savers unknowingly limit how much they can contribute to their pension each year.

For example, taking even a small amount of taxable income from a pension can trigger the money purchase annual allowance (MPAA).

Once activated, the amount someone can contribute with tax relief drops to £10,000 a year.

Missing extra tax relief

Many higher earners assume all pension tax relief is applied automatically – but that isn’t always the case.

While workplace schemes often apply relief through payroll, personal pensions and SIPPs usually operate under the ‘relief at source’ system.

Under this setup, providers automatically add 20% basic-rate relief, but higher-rate taxpayers must reclaim the rest themselves.

That means those paying 40% tax can claim an extra 20%, while 45% taxpayers can claim a further 25%, usually through self-assessment or by contacting HMRC.